In the latest trading session, FedEx (FDX) closed at $338.49, marking a -17.79% move from the previous day. This move lagged the S&P 500's daily gain of 0.26%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.42%.
Prior to today's trading, shares of the package delivery company had gained 4.59% outpaced the Transportation sector's gain of 4.41% and lagged the S&P 500's gain of 6.32%.
The investment community will be paying close attention to the earnings performance of FedEx in its upcoming release. The company is expected to report EPS of $5.82, down 4.12% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.06 billion, up 8.28% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.63 per share and revenue of $93.5 billion. These totals would mark changes of +7.92% and +6.34%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FedEx. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.48% lower. FedEx is currently a Zacks Rank #3 (Hold).
In terms of valuation, FedEx is presently being traded at a Forward P/E ratio of 20.98. This indicates a premium in contrast to its industry's Forward P/E of 16.39.
Meanwhile, FDX's PEG ratio is currently 1.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.66 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many 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).