FedEx (FDX) Rises But Trails Market: What Investors Should Know

In the latest trading session, FedEx (FDX) closed at $219.76, marking a +1.45% move from the previous day. The stock lagged the S&P 500's daily gain of 2.05%. Elsewhere, the Dow gained 1.78%, while the tech-heavy Nasdaq added 2.47%.The package delivery company's stock has climbed by 2.42% in the past month, falling short of the Transportation sector's gain of 7.17% and the S&P 500's gain of 5.21%.The upcoming earnings release of FedEx will be of great interest to investors. The company is expected to report EPS of $5.98, up 10.54% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $21.75 billion, reflecting a 1.62% fall from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates project earnings of $18.17 per share and a revenue of $87.46 billion, demonstrating changes of +2.08% and -0.23%, respectively, from the preceding year.Investors should also note any recent changes to analyst estimates for FedEx. Such recent modifications usually signify the changing landscape of 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. At present, FedEx boasts a Zacks Rank of #3 (Hold).Digging into valuation, FedEx currently has a Forward P/E ratio of 11.92. For comparison, its industry has an average Forward P/E of 13.47, which means FedEx is trading at a discount to the group.Investors should also note that FDX has a PEG ratio of 1.12 right now. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% of all industries, numbering over 250.The Zacks Industry Rank is ordered 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.Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.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 $803 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