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FedEx (FDX) Gains As Market Dips: What You Should Know

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FedEx (FDX - Free Report) closed at $225.26 in the latest trading session, marking a +0.76% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the package delivery company had lost 2.02% over the past month, lagging the Transportation sector's gain of 7.48% and the S&P 500's gain of 4.59% in that time.

Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be September 22, 2022. On that day, FedEx is projected to report earnings of $5.08 per share, which would represent year-over-year growth of 16.25%. Meanwhile, our latest consensus estimate is calling for revenue of $23.63 billion, up 7.41% from the prior-year quarter.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $23.16 per share and revenue of $98.91 billion. These results would represent year-over-year changes of +12.37% and +5.77%, respectively.

Investors should also note any recent changes to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FedEx is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 9.66 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.

Meanwhile, FDX's PEG ratio is currently 0.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.33 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.

To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.


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