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FedEx (FDX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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The most recent trading session ended with FedEx (FDX - Free Report) standing at $297.83, reflecting a -1.46% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 1.37%. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 2.3%.

Coming into today, shares of the package delivery company had gained 2.91% in the past month. In that same time, the Transportation sector gained 1.79%, while the S&P 500 gained 1.11%.

The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on September 19, 2024. The company is predicted to post an EPS of $5.02, indicating a 10.33% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $22.18 billion, showing a 2.28% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $20.94 per share and revenue of $90.1 billion, indicating changes of +17.64% and +2.79%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. FedEx is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, FedEx is presently being traded at a Forward P/E ratio of 14.44. This signifies a discount in comparison to the average Forward P/E of 18.61 for its industry.

Also, we should mention that FDX has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.68.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 241, this industry ranks in the bottom 5% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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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