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Here's Why FedEx (FDX) Fell More Than Broader Market
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FedEx (FDX - Free Report) ended the recent trading session at $241.19, demonstrating a -1.7% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.81%. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw a decrease of 0.95%.
The package delivery company's shares have seen a decrease of 3.95% over the last month, not keeping up with the Transportation sector's loss of 1.56% and the S&P 500's gain of 1.81%.
The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on December 19, 2023. The company is predicted to post an EPS of $4.07, indicating a 27.99% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $22.36 billion, indicating a 2% decline compared to the corresponding quarter of the prior year.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $18.14 per share and revenue of $89.76 billion. These results would represent year-over-year changes of +21.26% and -0.39%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. FedEx is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 13.53. Its industry sports an average Forward P/E of 14.81, so one might conclude that FedEx is trading at a discount comparatively.
Meanwhile, FDX's PEG ratio is currently 1.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.61.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why FedEx (FDX) Fell More Than Broader Market
FedEx (FDX - Free Report) ended the recent trading session at $241.19, demonstrating a -1.7% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.81%. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw a decrease of 0.95%.
The package delivery company's shares have seen a decrease of 3.95% over the last month, not keeping up with the Transportation sector's loss of 1.56% and the S&P 500's gain of 1.81%.
The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on December 19, 2023. The company is predicted to post an EPS of $4.07, indicating a 27.99% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $22.36 billion, indicating a 2% decline compared to the corresponding quarter of the prior year.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $18.14 per share and revenue of $89.76 billion. These results would represent year-over-year changes of +21.26% and -0.39%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. FedEx is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note FedEx's current valuation metrics, including its Forward P/E ratio of 13.53. Its industry sports an average Forward P/E of 14.81, so one might conclude that FedEx is trading at a discount comparatively.
Meanwhile, FDX's PEG ratio is currently 1.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.61.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 48, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.