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FedEx (FDX) Outpaces Stock Market Gains: What You Should Know

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FedEx (FDX - Free Report) closed the most recent trading day at $190.14, moving +1.24% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 6.59%.

Prior to today's trading, shares of the package delivery company had gained 8.53% over the past month. This has outpaced the Transportation sector's gain of 2.89% and the S&P 500's gain of 4.58% in that time.

Investors will be hoping for strength from FedEx as it approaches its next earnings release. In that report, analysts expect FedEx to post earnings of $2.72 per share. This would mark a year-over-year decline of 40.74%. Our most recent consensus estimate is calling for quarterly revenue of $22.63 billion, down 4.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.60 per share and revenue of $91.93 billion. These totals would mark changes of -34.01% and -1.7%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% lower. FedEx is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, FedEx is holding a Forward P/E ratio of 13.81. Its industry sports an average Forward P/E of 13.81, so we one might conclude that FedEx is trading at a no noticeable deviation comparatively.

It is also worth noting that FDX currently has a PEG ratio of 1.15. 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 1.78 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 104, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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