FedEx (FDX – Free Report) closed at $246.43 in the latest trading session, marking a -0.63% move from the prior day. This change lagged the S&P 500’s daily gain of 0.17%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.4%.
Prior to today’s trading, shares of the package delivery company had gained 5.35% over the past month. This has outpaced the Transportation sector’s gain of 1.1% and the S&P 500’s gain of 3.19% in that time.
Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be December 16, 2021. In that report, analysts expect FedEx to post earnings of $4.33 per share. This would mark a year-over-year decline of 10.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.53 billion, up 9.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $19.47 per share and revenue of $90.51 billion, which would represent changes of +7.15% and +7.8%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for FedEx. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.13% lower. FedEx is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, FedEx is currently trading at a Forward P/E ratio of 12.74. Its industry sports an average Forward P/E of 16.65, so we one might conclude that FedEx is trading at a discount comparatively.
It is also worth noting that FDX currently has a PEG ratio of 1.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. FDX’s industry had an average PEG ratio of 1.5 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 86, putting it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.