FedEx (FDX) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, FedEx (FDX) closed at $168.21, marking a -1.01% move from the previous day. This change lagged the S&P 500's daily loss of 0.68%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 1.46%.

Heading into today, shares of the package delivery company had lost 14.25% over the past month, lagging the Transportation sector's loss of 4.14% and the S&P 500's loss of 1.19% in that time.

Investors will be hoping for strength from FDX as it approaches its next earnings release, which is expected to be June 25, 2019. On that day, FDX is projected to report earnings of $4.91 per share, which would represent a year-over-year decline of 16.92%. Meanwhile, our latest consensus estimate is calling for revenue of $17.96 billion, up 3.75% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.44 per share and revenue of $69.82 billion. These totals would mark changes of +0.85% and +6.68%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FDX currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that FDX has a Forward P/E ratio of 11.01 right now. This represents a discount compared to its industry's average Forward P/E of 12.16.

We can also see that FDX currently has a PEG ratio of 0.86. 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 1.2 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 181, which puts it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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