In the latest market close, FedEx (FDX) reached $271.18, with a -1.16% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily loss of 0.28%. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 0.33%.
The package delivery company’s shares have seen an increase of 5.18% over the last month, surpassing the Transportation sector’s loss of 1.78% and the S&P 500’s gain of 0.41%.
Market participants will be closely following the financial results of FedEx in its upcoming release. The company plans to announce its earnings on December 19, 2024. In that report, analysts expect FedEx to post earnings of $3.88 per share. This would mark a year-over-year decline of 2.76%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.19 billion, up 0.13% from the year-ago period.
FDX’s full-year Zacks Consensus Estimates are calling for earnings of $19.60 per share and revenue of $88.7 billion. These results would represent year-over-year changes of +10.11% and +1.19%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for FedEx. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. FedEx presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 14 right now. This signifies a discount in comparison to the average Forward P/E of 19.31 for its industry.
It is also worth noting that FDX currently has a PEG ratio of 1.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Transportation – Air Freight and Cargo industry stood at 1.75 at the close of the market yesterday.
The Transportation – Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 17% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.
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