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FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
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FedEx (FDX - Free Report) closed at $201.62 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the package delivery company had lost 9.25% over the past month, lagging the Transportation sector's loss of 4.41% and the S&P 500's loss of 5.51% in that time.
FedEx will be looking to display strength as it nears its next earnings release, which is expected to be September 22, 2022. The company is expected to report EPS of $5.08, up 16.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.63 billion, up 7.41% from the year-ago period.
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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #3 (Hold).
In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 8.82. For comparison, its industry has an average Forward P/E of 13.53, which means FedEx is trading at a discount to the group.
We can also see that FDX currently has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
FedEx (FDX - Free Report) closed at $201.62 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's daily gain of 1.83%. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the package delivery company had lost 9.25% over the past month, lagging the Transportation sector's loss of 4.41% and the S&P 500's loss of 5.51% in that time.
FedEx will be looking to display strength as it nears its next earnings release, which is expected to be September 22, 2022. The company is expected to report EPS of $5.08, up 16.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.63 billion, up 7.41% from the year-ago period.
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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #3 (Hold).
In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 8.82. For comparison, its industry has an average Forward P/E of 13.53, which means FedEx is trading at a discount to the group.
We can also see that FDX currently has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.31 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.