Why the Market Dipped But FedEx (FDX) Gained Today
The latest trading session saw FedEx (FDX) ending at $297.24, denoting a +0.02% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.32% for the day. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.85%.
Prior to today's trading, shares of the package delivery company had lost 0.99% over the past month. This has was narrower than the Transportation sector's loss of 1.39% and lagged the S&P 500's gain of 1.52% in that time.
Investors will be eagerly watching for the performance of FedEx in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 19, 2024. The company is expected to report EPS of $4.91, up 7.91% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $22.18 billion, indicating a 2.28% increase compared to the same quarter of the previous year.
FDX's full-year Zacks Consensus Estimates are calling for earnings of $20.86 per share and revenue of $90.1 billion. These results would represent year-over-year changes of +17.19% and +2.79%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for FedEx. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.37% lower within the past month. At present, FedEx boasts a Zacks Rank of #3 (Hold).
With respect to valuation, FedEx is currently being traded at a Forward P/E ratio of 14.25. This valuation marks a discount compared to its industry's average Forward P/E of 17.61.
One should further note that FDX currently holds a PEG ratio of 1.08. 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 1.5 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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FedEx Corporation (FDX) : Free Stock Analysis Report