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FedEx (FDX) Gains But Lags Market: What You Should Know
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In the latest trading session, FedEx (FDX - Free Report) closed at $221.52, marking a +1.3% move from the previous day. The stock lagged the S&P 500's daily gain of 1.84%. Elsewhere, the Dow gained 1.33%, while the tech-heavy Nasdaq added 0.53%.
Prior to today's trading, shares of the package delivery company had gained 4.38% over the past month. This has outpaced the Transportation sector's loss of 1.15% and the S&P 500's loss of 0.5% in that time.
Wall Street will be looking for positivity from FedEx as it approaches its next earnings report date. This is expected to be June 23, 2022. On that day, FedEx is projected to report earnings of $6.80 per share, which would represent year-over-year growth of 35.73%. Meanwhile, our latest consensus estimate is calling for revenue of $24.28 billion, up 7.6% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. FedEx is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 9.68. For comparison, its industry has an average Forward P/E of 14.05, which means FedEx is trading at a discount to the group.
We can also see that FDX currently has a PEG ratio of 0.81. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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FedEx (FDX) Gains But Lags Market: What You Should Know
In the latest trading session, FedEx (FDX - Free Report) closed at $221.52, marking a +1.3% move from the previous day. The stock lagged the S&P 500's daily gain of 1.84%. Elsewhere, the Dow gained 1.33%, while the tech-heavy Nasdaq added 0.53%.
Prior to today's trading, shares of the package delivery company had gained 4.38% over the past month. This has outpaced the Transportation sector's loss of 1.15% and the S&P 500's loss of 0.5% in that time.
Wall Street will be looking for positivity from FedEx as it approaches its next earnings report date. This is expected to be June 23, 2022. On that day, FedEx is projected to report earnings of $6.80 per share, which would represent year-over-year growth of 35.73%. Meanwhile, our latest consensus estimate is calling for revenue of $24.28 billion, up 7.6% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. FedEx is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 9.68. For comparison, its industry has an average Forward P/E of 14.05, which means FedEx is trading at a discount to the group.
We can also see that FDX currently has a PEG ratio of 0.81. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 28% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.