Credit: Shutterstock photoFedEx (FDX) closed the most recent trading day at $183.78, moving +0.03% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.36%.
Coming into today, shares of the package delivery company had gained 10.01% in the past month. In that same time, the Transportation sector gained 11.11%, while the S&P 500 gained 8.17%.
Wall Street will be looking for positivity from FDX as it approaches its nex t earnings report date. On that day, FDX is projected to report earnings of $3.11 per share, which would represent a year-over-year decline of 16.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.68 billion, up 7.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.92 per share and revenue of $70.92 billion, which would represent changes of +3.98% and +8.35%, respectively, from the prior year.
Investors should also note any 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.
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.
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 has moved 0.07% higher. FDX is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, FDX is holding a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 11.74, so we one might conclude that FDX is trading at a discount comparatively.
It is also worth noting that FDX currently has a PEG ratio of 0.9. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.26 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% 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.
To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
