FedEx (FDX) Soars 5.4%: Is Further Upside Left in the Stock?

FedEx (FDX) shares rallied 5.4% in the last trading session to close at $353.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 12.7% gain over the past four weeks.The uptick in FDX shares followed an upgrade to Outperform with a target price of $427 by an analyst of financial services firm Robert W. Baird & co. FedEx was upgraded owing to its attractive valuation prior to the planned spinoff of FedEx Freight, indicating strong growth prospects following recent earnings and strategic updates.  This package delivery company is expected to post quarterly earnings of $4.06 per share in its upcoming report, which represents a year-over-year change of -10%. Revenues are expected to be $23.46 billion, up 5.9% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For FedEx, the consensus EPS estimate for the quarter has been revised 0.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on FDX going forward to see if this recent jump can turn into more strength down the road. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>FedEx is part of the Zacks Transportation - Air Freight and Cargo industry. GXO Logistics (GXO), another stock in the same industry, closed the last trading session 0.5% higher at $57.22. GXO has returned 4.1% in the past month.GXO Logistics' consensus EPS estimate for the upcoming report has changed -3.2% over the past month to $0.83. Compared to the company's year-ago EPS, this represents a change of -17%. GXO Logistics currently boasts a Zacks Rank of #3 (Hold).Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 Report GXO Logistics, Inc. (GXO): 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