FedEx (FDX) ended the last trading day at $283.33, up 0.08% from the previous trading session. The stock lagged the S&P 500, which was up 0.38% for the day. Meanwhile, the Dow gained 0.61% and the Nasdaq, a tech-heavy index, gained 0.03%.
Shares of the package delivery company fell 9.7 percent last month, outpacing the transportation sector’s loss of 19.65 percent and lagging the S&P 500’s loss of 3.2 percent.
Analysts and investors will be keeping a close eye on FedEx’s performance on the upcoming earnings release. The company’s earnings report is scheduled to be released on September 19, 2024. The company’s upcoming earnings per share are estimated at $5.02, representing an increase of 10.33% from the same quarter last year. At the same time, our latest consensus estimate is calling for revenue of $22.18 billion, representing an increase of 2.28% from the corresponding quarter last year.
For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $20.94 per share and revenue of $90.1 billion, representing changes of +17.64% and +2.79%, respectively, from the prior year.
Investors should also pay attention to any recent changes in analyst estimates for FedEx. These recent adjustments often reflect changing dynamics in near-term business patterns. As a result, optimistic estimate changes indicate that analysts are becoming positive about the company’s business health and profitability.
Our research has shown that these estimate changes are directly linked to near-term stock price movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable outside-audited track record, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. FedEx currently has a Zacks Rank of #3 (Hold).
Investors should also consider FedEx’s current valuation metrics, including its forward P/E ratio of 13.52. For comparison, the industry average is 16.78, meaning FedEx is trading at a discount to the group.
We can also see that FDX currently has a PEG ratio of 1.02. This metric is used similarly to the well-known P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As of yesterday’s close, the Transportation – Air Cargo & Freight industry had an average PEG ratio of 1.41.
The Transportation – Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.
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% of industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to use Zacks.com to keep an eye on all of these and other stock-moving metrics in the coming trading sessions.
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FedEx Corporation (FDX): Free Stock Analysis Report
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