FedEx (FDX) Stock Declines While Market Improves: Some Information for Investors

The most recent trading session ended with FedEx (FDX) standing at $259.47, reflecting a -0.32% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.13% for the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.1%.

The package delivery company's shares have seen a decrease of 5.54% over the last month, not keeping up with the Transportation sector's loss of 4.1% and the S&P 500's loss of 0.35%.

The upcoming earnings release of FedEx will be of great interest to investors. The company's earnings report is expected on June 25, 2024. In that report, analysts expect FedEx to post earnings of $5.33 per share. This would mark year-over-year growth of 7.89%. Our most recent consensus estimate is calling for quarterly revenue of $22.12 billion, up 0.89% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.69 per share and a revenue of $87.74 billion, representing changes of +18.25% and -2.63%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for FedEx. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. As of now, FedEx holds a Zacks Rank of #3 (Hold).

Looking at valuation, FedEx is presently trading at a Forward P/E ratio of 14.71. This denotes a discount relative to the industry's average Forward P/E of 17.99.

Meanwhile, FDX's PEG ratio is currently 1.23. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.68 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 190, finds itself in the bottom 25% echelons 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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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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