FedEx (FDX) Outperforms Broader Market: What You Need to Know

In the latest close session, FedEx (FDX) was up +1.25% at $241.15. The stock outpaced the S&P 500's daily gain of 0.79%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq gained 1.15%. Heading into today, shares of the package delivery company had gained 0.74% over the past month, outpacing the Transportation sector's loss of 1.44% and lagging the S&P 500's gain of 1.27%.Analysts and investors alike will be keeping a close eye on the performance of FedEx in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.99, indicating a 1.48% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.89 billion, up 4.18% from the prior-year quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.93 per share and a revenue of $91.81 billion, indicating changes of -1.43% and +4.42%, respectively, from the former year. Investors should also take note of any recent adjustments to analyst estimates for FedEx. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. At present, FedEx boasts a Zacks Rank of #4 (Sell). From a valuation perspective, FedEx is currently exchanging hands at a Forward P/E ratio of 13.28. For comparison, its industry has an average Forward P/E of 13.47, which means FedEx is trading at a discount to the group. We can additionally observe that FDX currently boasts a PEG ratio of 1.33. 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. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.61. The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 7% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 FedEx Corporation (FDX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks