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MARKETS LIVE BLOG:

STOCKS TRADE LOWER WITH FED IN FOCUS, AMAZON EARNINGS ON DECK

Prospect of rate cuts has fallen dramatically since the start of 2024, helping drive up Treasury yields

Here's Why FedEx (FDX) is a Strong Value Stock

Zacks Equity Research
·2 min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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FedEx (FDX)

Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.

FDX sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Transportation - Air Freight and Cargo industry's P/E of 18X, shares of FedEx are trading at a forward P/E of 15.5X. FDX also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 8.4X, and a Price/Sales ratio of 0.8X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $17.62 per share. FDX has an average earnings surprise of 8.1%.

FDX should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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FedEx Corporation (FDX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research