In the latest trading session, FedEx (FDX) closed at $393.73, marking a -2.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.29%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.89%.
Prior to today's trading, shares of the package delivery company had gained 11.53% outpaced the Transportation sector's gain of 8.95% and the S&P 500's gain of 10.54%.
The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. It is anticipated that the company will report an EPS of $5.8, marking a 4.45% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $23.86 billion, indicating a 7.38% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.61 per share and revenue of $93.26 billion, indicating changes of +7.81% and +6.06%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. FedEx currently has a Zacks Rank of #3 (Hold).
With respect to valuation, FedEx is currently being traded at a Forward P/E ratio of 20.57. For comparison, its industry has an average Forward P/E of 19.02, which means FedEx is trading at a premium to the group.
We can additionally observe that FDX currently boasts a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.73.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 41% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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FedEx Corporation (FDX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).