The latest trading session saw FedEx (FDX) ending at $226.12, denoting a -1.48% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 0.02%.
The the stock of package delivery company has risen by 10.58% in the past month, lagging the Transportation sector's gain of 14.63% and the S&P 500's gain of 13.05%.
The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. The company's upcoming EPS is projected at $5.98, signifying a 10.54% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $21.8 billion, indicating a 1.41% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.17 per share and a revenue of $87.46 billion, indicating changes of +2.08% and -0.23%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Right now, FedEx possesses a Zacks Rank of #3 (Hold).
Digging into valuation, FedEx currently has a Forward P/E ratio of 12.63. For comparison, its industry has an average Forward P/E of 14.31, which means FedEx is trading at a discount to the group.
Investors should also note that FDX has a PEG ratio of 1.19 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.78.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 226, this industry ranks in the bottom 9% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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FedEx Corporation (FDX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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