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FedEx (FDX) Dips More Than Broader Markets: What You Should Know

In the latest trading session, FedEx (FDX) closed at $221.27, marking a -0.74% move from the previous day. This move lagged the S&P 500's daily loss of 0.64%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 4.13%.

Heading into today, shares of the package delivery company had lost 3% over the past month, lagging the Transportation sector's loss of 1.74% and the S&P 500's gain of 0.13% in that time.

Wall Street will be looking for positivity from FedEx as it approaches its next earnings report date. This is expected to be June 20, 2023. On that day, FedEx is projected to report earnings of $4.78 per share, which would represent a year-over-year decline of 30.42%. Meanwhile, our latest consensus estimate is calling for revenue of $22.97 billion, down 5.85% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.80 per share and revenue of $91.4 billion. These totals would mark changes of -28.19% and -2.26%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for FedEx. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FedEx is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 15.03 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.35.

Investors should also note that FDX has a PEG ratio of 1.25 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.57 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow FDX in the coming trading sessions, be sure to utilize Zacks.com.

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FedEx Corporation (FDX) : Free Stock Analysis Report

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