After the closing bell on Dec 17, transport bellwether FedEx FDX reported stellar fiscal 2021 secon
After the closing bell on Dec 17, transport bellwether FedEx FDX reported stellar fiscal 2021 second-quarter outcomes. The courier firm outpaced earnings and income estimates.
Earnings per share got here in at $4.83, surpassing the Zacks Consensus Estimate of $3.90 and bettering from the year-ago earnings of $2.51. Revenues grew 19% yr over yr to a report $20.6 billion and edged previous the estimated $19.Three billion. That is the primary time that FedEx has reported gross sales of greater than $20 billion and double the earnings of final yr. Sturdy performances have been pushed by larger quantity progress in FedEx Worldwide Precedence and U.S. home residential bundle providers (learn: Why Cyclical Sector ETFs Are Roaring to All-Time Highs).
Regardless of the sturdy outcomes, FDX shares dropped nearly 4% in after market hours. FedEx has a Rank #3 (Maintain) and a powerful VGM Rating of A. It at the moment falls underneath a top-ranked Zacks trade (high 17%).
ETFs in Focus
The FedEx earnings report has put transport ETFs — iShares Dow Jones Transportation Common Fund IYT, SPDR S&P Transportation ETF XTN and First Belief Nasdaq Transportation ETF FTXR — in focus. All these funds at the moment have a Zacks ETF Rank #3 (Maintain) (see: all of the Industrials ETFs right here).
IYT
The ETF tracks the Dow Jones Transportation Common Index, giving buyers publicity to a small basket of 20 securities. Of those, FedEx occupies the highest place with 14.1% of the property. Throughout the transportation sector, railroads, and air freight and logistics take the highest two spots with 34.6% and 31.3% share, respectively, whereas trucking (18.2%) and airways (10.4%) spherical off the subsequent two. The fund has collected $1.5 billion in AUM whereas it sees a superb buying and selling quantity of round 214,000 shares a day. It expenses 42 bps in charges per yr (learn: 6 Secret Santa ETFs to Add Cheer to Your Portfolio).
XTN
This fund follows the S&P Transportation Choose Business Index and makes use of nearly an equal-weight methodology for every safety. Holding 42 shares with AUM of $429 million, FedEx takes accounts for two.7% share within the basket. The product is closely uncovered to trucking, which represents greater than one-third of the portfolio whereas airways, and air freight & logistics make up 28% and 21.5% share, respectively. The fund expenses 35 bps in charges per yr from buyers and trades in a median quantity of about 429,000 shares a day.
FTXR
This fund presents publicity to the 31 most-liquid U.S. transportation securities primarily based on volatility, worth and progress by monitoring the Nasdaq US Good Transportation Index. FedEx holds 2.2% share within the basket. Right here, floor freight & logistics takes the most important share at 33.3%, adopted by auto & truck producers (20.5%), auto, truck & motorbike elements (15.7%), and airways (14.7%). FTXR has amassed $797.7 million in its asset base and expenses 60 bps in annual charges. The common buying and selling quantity is average at 115,000 shares.
Need key ETF information delivered straight to your inbox?
Zacks’ free Fund Publication will transient you on high information and evaluation, in addition to top-performing ETFs, every week. Get it free >>
Need the most recent suggestions from Zacks Funding Analysis? Right now, you may obtain 7 Greatest Shares for the Subsequent 30 Days. Click on to get this free report
FedEx Company (FDX): Free Inventory Evaluation Report
iShares Transportation Common ETF (IYT): ETF Analysis Stories
SPDR S&P Transportation ETF (XTN): ETF Analysis Stories
First Belief NASDAQ Transportation ETF (FTXR): ETF Analysis Stories
To learn this text on Zacks.com click on right here.
Zacks Funding Analysis
Need the most recent suggestions from Zacks Funding Analysis? Right now, you may obtain 7 Greatest Shares for the Subsequent 30 Days. Click on to get this free report
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.