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FedEx (FDX) Dips More Than Broader Markets: What You Should Know
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FedEx (FDX - Free Report) closed at $256.62 in the latest trading session, marking a -1.67% move from the prior day. This change lagged the S&P 500's daily loss of 0.42%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the package delivery company had lost 1.28% over the past month. This has was narrower than the Transportation sector's loss of 2.82% and lagged the S&P 500's gain of 1.02% in that time.
FedEx will be looking to display strength as it nears its next earnings release, which is expected to be September 20, 2023. In that report, analysts expect FedEx to post earnings of $3.68 per share. This would mark year-over-year growth of 6.98%. Meanwhile, our latest consensus estimate is calling for revenue of $21.84 billion, down 5.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.30 per share and revenue of $89.93 billion. These totals would mark changes of +15.64% and -0.21%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 15.08 right now. For comparison, its industry has an average Forward P/E of 16.2, which means FedEx is trading at a discount to the group.
Meanwhile, FDX's PEG ratio is currently 1.26. 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 was holding an average PEG ratio of 1.73 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 6, which puts it in the top 3% 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) Dips More Than Broader Markets: What You Should Know
FedEx (FDX - Free Report) closed at $256.62 in the latest trading session, marking a -1.67% move from the prior day. This change lagged the S&P 500's daily loss of 0.42%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.08%.
Prior to today's trading, shares of the package delivery company had lost 1.28% over the past month. This has was narrower than the Transportation sector's loss of 2.82% and lagged the S&P 500's gain of 1.02% in that time.
FedEx will be looking to display strength as it nears its next earnings release, which is expected to be September 20, 2023. In that report, analysts expect FedEx to post earnings of $3.68 per share. This would mark year-over-year growth of 6.98%. Meanwhile, our latest consensus estimate is calling for revenue of $21.84 billion, down 5.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $17.30 per share and revenue of $89.93 billion. These totals would mark changes of +15.64% and -0.21%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. FedEx currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 15.08 right now. For comparison, its industry has an average Forward P/E of 16.2, which means FedEx is trading at a discount to the group.
Meanwhile, FDX's PEG ratio is currently 1.26. 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 was holding an average PEG ratio of 1.73 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 6, which puts it in the top 3% 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.