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Here's Why FedEx (FDX) Gained But Lagged the Market Today
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FedEx (FDX - Free Report) closed at $283.30 in the latest trading session, marking a +0.09% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, added 1.16%.
The package delivery company's stock has climbed by 2.03% in the past month, exceeding the Transportation sector's gain of 1.99% and lagging the S&P 500's gain of 3.48%.
The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on September 19, 2024. In that report, analysts expect FedEx to post earnings of $4.87 per share. This would mark year-over-year growth of 7.03%. Meanwhile, our latest consensus estimate is calling for revenue of $22.12 billion, up 2.04% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.82 per share and a revenue of $90.04 billion, signifying shifts of +16.97% and +2.93%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% lower. At present, FedEx boasts a Zacks Rank of #3 (Hold).
Digging into valuation, FedEx currently has a Forward P/E ratio of 13.6. This represents a discount compared to its industry's average Forward P/E of 17.29.
It's also important to note that FDX currently trades at a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.45.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why FedEx (FDX) Gained But Lagged the Market Today
FedEx (FDX - Free Report) closed at $283.30 in the latest trading session, marking a +0.09% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.16%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, added 1.16%.
The package delivery company's stock has climbed by 2.03% in the past month, exceeding the Transportation sector's gain of 1.99% and lagging the S&P 500's gain of 3.48%.
The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on September 19, 2024. In that report, analysts expect FedEx to post earnings of $4.87 per share. This would mark year-over-year growth of 7.03%. Meanwhile, our latest consensus estimate is calling for revenue of $22.12 billion, up 2.04% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $20.82 per share and a revenue of $90.04 billion, signifying shifts of +16.97% and +2.93%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.56% lower. At present, FedEx boasts a Zacks Rank of #3 (Hold).
Digging into valuation, FedEx currently has a Forward P/E ratio of 13.6. This represents a discount compared to its industry's average Forward P/E of 17.29.
It's also important to note that FDX currently trades at a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.45.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 103, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.