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FedEx (FDX) Gains But Lags Market: What You Should Know

FedEx (FDX) closed the most recent trading day at $256.59, moving +0.54% from the previous trading session. This move lagged the S&P 500's daily gain of 0.85%.

Prior to today's trading, shares of the package delivery company had lost 8.16% over the past month. This has lagged the Transportation sector's loss of 2.8% and the S&P 500's loss of 0.37% in that time.

Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be September 21, 2021. The company is expected to report EPS of $4.96, up 1.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.81 billion, up 12.86% from the prior-year quarter.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $21.27 per share and revenue of $90.56 billion. These results would represent year-over-year changes of +17.06% and +7.86%, respectively.

Investors should also note any recent changes to analyst estimates for FDX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. FDX is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that FDX has a Forward P/E ratio of 12 right now. Its industry sports an average Forward P/E of 16.18, so we one might conclude that FDX is trading at a discount comparatively.

Investors should also note that FDX has a PEG ratio of 1 right now. 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 1.47 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 55, which puts it in the top 22% 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.

To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.


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FedEx Corporation (FDX): Free Stock Analysis Report
 
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