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FedEx (FDX) Stock Sinks As Market Gains: Here's Why

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FedEx (FDX - Free Report) closed the latest trading day at $275.04, indicating a -0.15% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.

The the stock of package delivery company has risen by 0.65% in the past month, leading the Transportation sector's loss of 2.01% and undershooting the S&P 500's gain of 1.67%.

Analysts and investors alike will be keeping a close eye on the performance of FedEx in its upcoming earnings disclosure. The company's earnings report is set to go public on December 19, 2024. In that report, analysts expect FedEx to post earnings of $3.88 per share. This would mark a year-over-year decline of 2.76%. At the same time, our most recent consensus estimate is projecting a revenue of $22.19 billion, reflecting a 0.13% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.60 per share and a revenue of $88.7 billion, signifying shifts of +10.11% and +1.19%, respectively, from the last year.

Any recent changes to analyst estimates for FedEx should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 past month, the Zacks Consensus EPS estimate has moved 0.01% lower. FedEx is currently sporting a Zacks Rank of #4 (Sell).

From a valuation perspective, FedEx is currently exchanging hands at a Forward P/E ratio of 14.06. This denotes a discount relative to the industry's average Forward P/E of 19.28.

It's also important to note that FDX currently trades at a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.82 at the close of the market yesterday.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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