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 Raises Outlook, Shares Jump: ETFs to Tap the Strength
Read MoreHide Full Article
After the closing bell on Mar 16, transport bellwether FedEx (FDX - Free Report) delivered stellar third-quarter fiscal 2023 results. The courier company topped earnings estimates and lifted its full-year outlook. It, however, missed on the revenue front.
Driven by solid results, FDX shares jumped by more than 11% in after-market trade. Investors can tap the strength with ETFs, with the highest allocation to FedEx. These include iShares U.S. Transportation ETF (IYT - Free Report) , ProShares Supply Chain Logistics ETF (SUPL - Free Report) , First Trust Nasdaq Transportation ETF (FTXR - Free Report) , AdvisorShares Drone Technology ETF and Pacer Industrials and Logistics ETF (SHPP - Free Report) .
Earnings per share came in at $3.41, beating the Zacks Consensus Estimate of $2.67 but declining from the year-ago earnings of $4.59 per share. Revenues fell 6% year over year to $22.2 billion and were also shy of the estimated $22.6 billion. The company’s cost-cutting efforts are paying off and helping it to offset ongoing demand weakness.
The parcel company lifted its fiscal 2023 earnings guidance to $13.80-$14.40 from $12.50-$13.50 despite weak market conditions. FedEx is making good progress on its plan to save $3.7 billion in costs from its global delivery business (see: all the Industrials ETFs here).
iShares U.S. Transportation ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 49 securities. Of these, FedEx takes the fifth spot and makes up for 5.3% of the assets. Within the transportation sector, air freight and logistics, and railroads take the top two spots with 32.6% and 28.4% share, respectively, while trucking (23%) and airlines (14.2%) round off the next two.
iShares U.S. Transportation ETF has accumulated $721.4 million in AUM while seeing a good trading volume of around 173,000 shares a day. The fund charges 39 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Inflation Cools Down in February: ETFs to Consider).
ProShares Supply Chain Logistics ETF is the first ETF focused exclusively on the companies poised to potentially benefit from the transformation of how raw materials and goods move around the world. These logistics companies include leading global shipping, railroad, air and trucking companies that collectively touch every point of the supply chain. It follows the FactSet Supply Chain Logistics Index, charging investors 58 bps in annual fees. ProShares Supply Chain Logistics ETF holds 41 stocks in its basket, with FedEx making up for the third spot with 4.9% of the assets.
ProShares Supply Chain Logistics ETF has AUM of $1.8 million and trades in volume of 500 shares per day. It charges 58 bps in fees per year from investors.
First Trust Nasdaq Transportation ETF offers exposure to the 30 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx occupies the sixth position in the basket with a 4.7% share. Railroads, airlines, trucking, and auto parts make up for double-digit allocation each.
First Trust Nasdaq Transportation ETF has amassed $51.9 million in its asset base and charges 60 bps in annual fees. The average trading volume is light at 16,000 shares. FTXR has a Zacks ETF Rank #2.
AdvisorShares Drone Technology ETF
AdvisorShares Drone Technology ETF seeks to invests in the U.S.-listed equities of domestic and global companies believed to have dominant market positions with unique opportunities for growth and expansion in the drone and autonomous vehicles (AV) ecosystems. It holds 28 stocks in its basket, with FedEx occupying the sixth position at 4.1% share (read: Forget Tech Drag, Buy Sector ETFs Supporting S&P 500 Earnings).
AdvisorShares Drone Technology ETF has accumulated $0.5 million in its asset base and trades in a meager volume of under 500 shares. It charges 99 bps in annual fees.
Pacer Industrials and Logistics ETF tracks the Pacer Global Supply Chain Infrastructure Index, which aims to offer investors exposure to globally-listed stocks and depositary receipts involved in the support and functioning of global distribution supply chains. It holds 104 stocks in its basket, with FedEx accounting for the 10th position at 3.2% share.
Pacer Industrials and Logistics ETF debuted in the space in June last year and has accumulated $1 million in its asset base. It trades in a meager volume of under 100 shares and charges 60 bps in annual fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
FedEx Raises Outlook, Shares Jump: ETFs to Tap the Strength
After the closing bell on Mar 16, transport bellwether FedEx (FDX - Free Report) delivered stellar third-quarter fiscal 2023 results. The courier company topped earnings estimates and lifted its full-year outlook. It, however, missed on the revenue front.
Driven by solid results, FDX shares jumped by more than 11% in after-market trade. Investors can tap the strength with ETFs, with the highest allocation to FedEx. These include iShares U.S. Transportation ETF (IYT - Free Report) , ProShares Supply Chain Logistics ETF (SUPL - Free Report) , First Trust Nasdaq Transportation ETF (FTXR - Free Report) , AdvisorShares Drone Technology ETF and Pacer Industrials and Logistics ETF (SHPP - Free Report) .
Earnings per share came in at $3.41, beating the Zacks Consensus Estimate of $2.67 but declining from the year-ago earnings of $4.59 per share. Revenues fell 6% year over year to $22.2 billion and were also shy of the estimated $22.6 billion. The company’s cost-cutting efforts are paying off and helping it to offset ongoing demand weakness.
The parcel company lifted its fiscal 2023 earnings guidance to $13.80-$14.40 from $12.50-$13.50 despite weak market conditions. FedEx is making good progress on its plan to save $3.7 billion in costs from its global delivery business (see: all the Industrials ETFs here).
ETFs in Focus
Let’s delve into each ETF below:
iShares U.S. Transportation ETF (IYT - Free Report)
iShares U.S. Transportation ETF tracks the S&P Transportation Select Industry FMC Capped Index, giving investors exposure to a small basket of 49 securities. Of these, FedEx takes the fifth spot and makes up for 5.3% of the assets. Within the transportation sector, air freight and logistics, and railroads take the top two spots with 32.6% and 28.4% share, respectively, while trucking (23%) and airlines (14.2%) round off the next two.
iShares U.S. Transportation ETF has accumulated $721.4 million in AUM while seeing a good trading volume of around 173,000 shares a day. The fund charges 39 bps in fees per year and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Inflation Cools Down in February: ETFs to Consider).
ProShares Supply Chain Logistics ETF (SUPL - Free Report)
ProShares Supply Chain Logistics ETF is the first ETF focused exclusively on the companies poised to potentially benefit from the transformation of how raw materials and goods move around the world. These logistics companies include leading global shipping, railroad, air and trucking companies that collectively touch every point of the supply chain. It follows the FactSet Supply Chain Logistics Index, charging investors 58 bps in annual fees. ProShares Supply Chain Logistics ETF holds 41 stocks in its basket, with FedEx making up for the third spot with 4.9% of the assets.
ProShares Supply Chain Logistics ETF has AUM of $1.8 million and trades in volume of 500 shares per day. It charges 58 bps in fees per year from investors.
First Trust Nasdaq Transportation ETF (FTXR - Free Report)
First Trust Nasdaq Transportation ETF offers exposure to the 30 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx occupies the sixth position in the basket with a 4.7% share. Railroads, airlines, trucking, and auto parts make up for double-digit allocation each.
First Trust Nasdaq Transportation ETF has amassed $51.9 million in its asset base and charges 60 bps in annual fees. The average trading volume is light at 16,000 shares. FTXR has a Zacks ETF Rank #2.
AdvisorShares Drone Technology ETF
AdvisorShares Drone Technology ETF seeks to invests in the U.S.-listed equities of domestic and global companies believed to have dominant market positions with unique opportunities for growth and expansion in the drone and autonomous vehicles (AV) ecosystems. It holds 28 stocks in its basket, with FedEx occupying the sixth position at 4.1% share (read: Forget Tech Drag, Buy Sector ETFs Supporting S&P 500 Earnings).
AdvisorShares Drone Technology ETF has accumulated $0.5 million in its asset base and trades in a meager volume of under 500 shares. It charges 99 bps in annual fees.
Pacer Industrials and Logistics ETF (SHPP - Free Report)
Pacer Industrials and Logistics ETF tracks the Pacer Global Supply Chain Infrastructure Index, which aims to offer investors exposure to globally-listed stocks and depositary receipts involved in the support and functioning of global distribution supply chains. It holds 104 stocks in its basket, with FedEx accounting for the 10th position at 3.2% share.
Pacer Industrials and Logistics ETF debuted in the space in June last year and has accumulated $1 million in its asset base. It trades in a meager volume of under 100 shares and charges 60 bps in annual fees.