In the latest trading session, FedEx (FDX) closed at $157.55, marking a -0.49% move from the previous day. This move lagged the S&P 500’s daily gain of 0.05%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.11%.
Coming into today, shares of the package delivery company had gained 5.06% in the past month. In that same time, the Transportation sector gained 6.24%, while the S&P 500 gained 4.32%.
FDX will be looking to display strength as it nears its next earnings release, which is expected to be December 17, 2019. On that day, FDX is projected to report earnings of $2.86 per share, which would represent a year-over-year decline of 29.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.58 billion, down 1.38% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.11 per share and revenue of $69.72 billion. These totals would mark changes of -21.97% and +0.04%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for FDX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. FDX currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, FDX is holding a Forward P/E ratio of 13.07. This valuation marks a premium compared to its industry’s average Forward P/E of 11.56.
Also, we should mention that FDX has a PEG ratio of 1.09. 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. The Transportation – Air Freight and Cargo industry currently had an average PEG ratio of 1.49 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 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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