In the latest trading session, FedEx (FDX) closed at $221.08, marking a -0.3% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Prior to today's trading, shares of the package delivery company had lost 3.3% over the past month. This has lagged the Transportation sector's gain of 1.32% and the S&P 500's gain of 4.14% in that time.
Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be June 20, 2023. The company is expected to report EPS of $4.82, down 29.84% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $22.85 billion, down 6.33% from the year-ago period.
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. 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 2.06% higher within the past month. FedEx is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 12.11 right now. For comparison, its industry has an average Forward P/E of 13.95, which means FedEx is trading at a discount to the group.
Also, we should mention that FDX has a PEG ratio of 1.01. 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 1.58 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report