FedEx (FDX) Dips More Than Broader Markets: What You Should Know

In the latest trading session, FedEx (FDX) closed at $209.72, marking a -0.74% move from the previous day. This change lagged the S&P 500's daily loss of 0.4%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.18%.

Prior to today's trading, shares of the package delivery company had gained 2.7% over the past month. This has outpaced the Transportation sector's loss of 5.01% and the S&P 500's loss of 9.39% in that time.

Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be June 23, 2022. In that report, analysts expect FedEx to post earnings of $6.80 per share. This would mark year-over-year growth of 35.73%. Meanwhile, our latest consensus estimate is calling for revenue of $24.28 billion, up 7.6% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $20.56 per share and revenue of $93.4 billion, which would represent changes of +13.15% and +11.24%, respectively, from the prior year.

Any recent changes to analyst estimates for FedEx should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant within the past month. FedEx is currently a Zacks Rank #3 (Hold).

Looking at its valuation, FedEx is holding a Forward P/E ratio of 10.28. This valuation marks a discount compared to its industry's average Forward P/E of 13.88.

We can also see that FDX currently has a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.55 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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FedEx Corporation (FDX): Free Stock Analysis Report
 
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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.

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