FedEx (FDX) Stock Falls as the Market Gains: What You Need to Know
FedEx (FDX) closed the last trading day at $197.01, moving -0.87% from the previous trading session. That move lagged the S&P 500’s 0.57% daily gain. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq gained 0.11%.
Going into today, shares of the package delivery company had lost 10.17% over the past month, outpacing the transportation sector’s loss of 12.42% and the S&P 500’s loss of 10.81% during this period.
FedEx will be looking to show strength ahead of its next earnings release. On that day, FedEx is expected to report earnings of $6.80 per share, which would represent 35.73% year-over-year growth. Our most recent consensus estimate calls for quarterly revenue of $24.28 billion, up 7.6% from the prior year period.
For the full year, our Zacks consensus estimates call for earnings of $20.56 per share and revenue of $93.4 billion, which would represent swings of +13.15% and +11, 24%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.
Our research shows that these estimate changes are directly correlated to short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of outperformance verified by external audits, with #1 stocks generating an average annual return of +25% since 1988 The Zacks Consensus EPS estimate rose 0.1% over the past month. FedEx currently holds a Zacks rank of #3 (Hold).
Investors should also note FedEx’s current valuation metrics, including its Forward P/E ratio of 9.67. This valuation marks a discount compared to the average Forward P/E of its sector of 14.03.
We can also see that FDX currently has a PEG ratio of 0.81. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. Transportation – Airfreight and freight stocks maintain, on average, a PEG ratio of 1.57 based on yesterday’s closing prices.
The Transportation – Air Cargo and Freight industry is part of the Transportation sector. This industry currently has a Zacks Industry Ranking of 68, which places it in the top 27% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.