See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
C.H. Robinson Worldwide, Inc. (CHRW) - free report >>
FedEx Corporation (FDX) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
C.H. Robinson Worldwide, Inc. (CHRW) - free report >>
FedEx Corporation (FDX) - free report >>
Image: Bigstock
FedEx (FDX) Stock Slips to 52-Week Low: What's Ailing It?
Shares of FedEx Corporation (FDX - Free Report) have had a disappointing run on the bourses, ever since the company released first-quarter fiscal 2022 (ended Aug 31, 2021) results on Sep 21. The stock has declined 11.8% ever since. Adding to the woes, shares of the company hit a 52-week low of $220.80 during the trading session on Sep 29, before increasing a bit to close at $221.09.
Reasons for the Disappointing Performance
FedEx reported lower-than-expected earnings per share for thefirst quarter of fiscal 2022. Moreover, the bottom line declined year over year due to supply-chain disruptions and a tight labor market. Escalated labor costs and network inefficiencies stemming from staffing shortages were the major shortcomings inducing the dismal bottom-line performance.
Additionally, the company cut its financial outlook for fiscal 2022 due to labor scarcity. For the same period, FedEx now anticipates earnings per share, before the year-end MTM retirement plan accounting adjustment, and exclusion of the estimated TNT Express integration expenses and costs associated with business realignment activities, in the band of $19.75-$21 (earlier view: $20.50-$21.50).
Per the company’s president, chief operating officer and director Raj Subramaniam, "Overcoming staffing and retention challenges is our utmost priority."
Lackluster Momentum Score & Unimpressive Zacks Rank
The company’s Momentum Score of D further highlights its short-term unattractiveness. Additionally, FedEx currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the Zacks Transportation sector are Schneider National, Inc.(SNDR - Free Report) ,C.H. Robinson Worldwide, Inc. (CHRW - Free Report) andTFI International Inc. (TFII - Free Report) , all presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected earnings per share (three to five years) growth rate for Schneider National, C.H. Robinson and TFI International is pegged at 17.9%, 9% and 31.6%, respectively.