Yahoo Finance FedEx (FDX) Stock Sinks As Market Gains: What You Should Know
FedEx (FDX) closed at $228.68 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 2.7%.
Coming into today, shares of the package delivery company had lost 0.59% in the past month. In that same time, the Transportation sector lost 2.57%, while the S&P 500 gained 1.07%.
Wall Street will be looking for positivity from FedEx as it approaches its next earnings report date. This is expected to be June 20, 2023. In that report, analysts expect FedEx to post earnings of $4.78 per share. This would mark a year-over-year decline of 30.42%. Meanwhile, our latest consensus estimate is calling for revenue of $22.85 billion, down 6.33% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.80 per share and revenue of $91.07 billion, which would represent changes of -28.19% and -2.62%, respectively, from the prior 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. FedEx currently has a Zacks Rank of #2 (Buy).
Digging into valuation, FedEx currently has a Forward P/E ratio of 15.48. Its industry sports an average Forward P/E of 15.67, so we one might conclude that FedEx is trading at a discount comparatively.
It is also worth noting that FDX currently has a PEG ratio of 1.29. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.59 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 71, which puts it in the top 29% 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.
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
