We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FedEx (FDX) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
FedEx (FDX - Free Report) closed at $185.59 in the latest trading session, marking a +0.08% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the package delivery company had gained 8.69% over the past month. This has outpaced the Transportation sector's gain of 7.21% and the S&P 500's gain of 5.93% in that time.
FDX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.11, down 16.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.68 billion, up 7.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.92 per share and revenue of $70.92 billion. These totals would mark changes of +3.98% and +8.35%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for FDX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FDX is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that FDX has a Forward P/E ratio of 11.65 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.08.
Also, we should mention that FDX has a PEG ratio of 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FedEx (FDX) Gains But Lags Market: What You Should Know
FedEx (FDX - Free Report) closed at $185.59 in the latest trading session, marking a +0.08% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the package delivery company had gained 8.69% over the past month. This has outpaced the Transportation sector's gain of 7.21% and the S&P 500's gain of 5.93% in that time.
FDX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.11, down 16.4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.68 billion, up 7.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.92 per share and revenue of $70.92 billion. These totals would mark changes of +3.98% and +8.35%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for FDX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FDX is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that FDX has a Forward P/E ratio of 11.65 right now. This valuation marks a discount compared to its industry's average Forward P/E of 12.08.
Also, we should mention that FDX has a PEG ratio of 0.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.29 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 16, putting it in the top 7% of all 250+ industries.
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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.