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FedEx (FDX) Gains But Lags Market: What You Should Know

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In the latest market close, FedEx (FDX - Free Report) reached $248.05, with a +0.85% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.19%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 1.96%.

Prior to today's trading, shares of the package delivery company had lost 5.21% over the past month. This has lagged the Transportation sector's loss of 2.76% and the S&P 500's gain of 3.35% in that time.

Market participants will be closely following the financial results of FedEx in its upcoming release. The company plans to announce its earnings on June 25, 2024. The company's earnings per share (EPS) are projected to be $5.34, reflecting an 8.1% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.14 billion, up 0.97% from the prior-year quarter.

Any recent changes to analyst estimates for FedEx should also be noted by investors. Such recent modifications usually signify the changing landscape of near-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. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.91% decrease. FedEx currently has a Zacks Rank of #3 (Hold).

In terms of valuation, FedEx is presently being traded at a Forward P/E ratio of 12.1. This indicates a discount in contrast to its industry's Forward P/E of 17.16.

We can additionally observe that FDX currently boasts a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. FDX's industry had an average PEG ratio of 1.51 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 36% of all industries, numbering over 250.

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.

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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