In the latest trading session, FedEx (FDX) closed at $158.01, marking a -0.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.08%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Coming into today, shares of the package delivery company had gained 8.81% in the past month. In that same time, the Transportation sector gained 3.98%, while the S&P 500 gained 2.7%.
Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be December 17, 2019. The company is expected to report EPS of $2.86, down 29.03% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.58 billion, down 1.38% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.11 per share and revenue of $69.72 billion, which would represent changes of -21.97% and +0.04%, respectively, from the prior year.
Any recent changes to analyst estimates for FDX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. FDX is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, FDX is currently trading at a Forward P/E ratio of 13.08. This represents a premium compared to its industry's average Forward P/E of 11.93.
It is also worth noting that FDX currently has a PEG ratio of 1.09. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 27, which puts it in the top 11% 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.
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