FedEx (FDX) closed the most recent trading day at $148.40, moving -0.06% from the previous trading session. This change lagged the S&P 500’s 1.01% gain on the day. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq gained 1.43%.
Coming into today, shares of the package delivery company had lost 1.1% in the past month. In that same time, the Transportation sector lost 2.66%, while the S&P 500 gained 0.19%.
FDX will be looking to display strength as it nears its next earnings release, which is expected to be March 17, 2020. On that day, FDX is projected to report earnings of $1.82 per share, which would represent a year-over-year decline of 39.93%. Our most recent consensus estimate is calling for quarterly revenue of $17.19 billion, up 1.04% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.84 per share and revenue of $69.23 billion, which would represent changes of -30.15% and -0.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FDX. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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. The Zacks Consensus EPS estimate has moved 0.56% lower within the past month. FDX currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, FDX currently has a Forward P/E ratio of 13.7. This valuation marks a premium compared to its industry’s average Forward P/E of 13.45.
Investors should also note that FDX has a PEG ratio of 1.14 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. FDX’s industry had an average PEG ratio of 1.39 as of yesterday’s close.
The Transportation – Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.