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FedEx (FDX) Gains As Market Dips: What You Should Know

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In the latest trading session, FedEx (FDX - Free Report) closed at $164.85, marking a +0.01% move from the previous day. This change outpaced the S&P 500's 0.12% loss on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.02%.

Coming into today, shares of the package delivery company had gained 16.01% in the past month. In that same time, the Transportation sector gained 9.98%, while the S&P 500 gained 4.42%.

FDX will be looking to display strength as it nears its next earnings release, which is expected to be December 17, 2019. The company is expected to report EPS of $2.86, down 29.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.58 billion, down 1.38% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.11 per share and revenue of $69.72 billion, which would represent changes of -21.97% and +0.04%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for FDX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. FDX is currently a Zacks Rank #4 (Sell).

Looking at its valuation, FDX is holding a Forward P/E ratio of 13.61. Its industry sports an average Forward P/E of 12.27, so we one might conclude that FDX is trading at a premium comparatively.

Meanwhile, FDX's PEG ratio is currently 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.5 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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