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.
FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
In the latest trading session, FedEx (FDX - Free Report) closed at $229.01, marking a -0.6% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.52%.
Prior to today's trading, shares of the package delivery company had lost 9.05% over the past month. This has lagged the Transportation sector's loss of 0.48% and the S&P 500's loss of 4.02% in that time.
Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be March 17, 2022. In that report, analysts expect FedEx to post earnings of $4.74 per share. This would mark year-over-year growth of 36.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.61 billion, up 9.74% from the year-ago period.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $20.82 per share and revenue of $92.9 billion. These results would represent year-over-year changes of +14.58% and +10.65%, respectively.
It is also important to note the recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, FedEx is holding a Forward P/E ratio of 11.07. Its industry sports an average Forward P/E of 15.08, so we one might conclude that FedEx is trading at a discount comparatively.
It is also worth noting that FDX currently has a PEG ratio of 0.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, FedEx (FDX - Free Report) closed at $229.01, marking a -0.6% move from the previous day. This change lagged the S&P 500's 0.09% gain on the day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq lost 0.52%.
Prior to today's trading, shares of the package delivery company had lost 9.05% over the past month. This has lagged the Transportation sector's loss of 0.48% and the S&P 500's loss of 4.02% in that time.
Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be March 17, 2022. In that report, analysts expect FedEx to post earnings of $4.74 per share. This would mark year-over-year growth of 36.6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.61 billion, up 9.74% from the year-ago period.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $20.82 per share and revenue of $92.9 billion. These results would represent year-over-year changes of +14.58% and +10.65%, respectively.
It is also important to note the recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, FedEx is holding a Forward P/E ratio of 11.07. Its industry sports an average Forward P/E of 15.08, so we one might conclude that FedEx is trading at a discount comparatively.
It is also worth noting that FDX currently has a PEG ratio of 0.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.