FedEx (FDX) Outpaces Stock Market Gains: What You Should Know

FedEx (FDX) closed at $204.69 in the latest trading session, marking a +1.89% move from the prior day. This change outpaced the S&P 500's 1.86% gain on the day. Meanwhile, the Dow gained 1.98%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the package delivery company had lost 2.1% over the past month, outpacing the Transportation sector's loss of 9.95% and the S&P 500's loss of 12.37% in that time.

Investors will be hoping for strength from FedEx as it approaches its next earnings release, which is expected to be June 23, 2022. On that day, FedEx is projected to report earnings of $6.80 per share, which would represent year-over-year growth of 35.73%. Our most recent consensus estimate is calling for quarterly revenue of $24.28 billion, up 7.6% from the year-ago period.

FDX's full-year Zacks Consensus Estimates are calling for earnings of $20.56 per share and revenue of $93.4 billion. These results would represent year-over-year changes of +13.15% and +11.24%, respectively.

Investors might also notice recent changes to analyst estimates for FedEx. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FedEx is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that FedEx has a Forward P/E ratio of 9.77 right now. Its industry sports an average Forward P/E of 13.34, so we one might conclude that FedEx is trading at a discount comparatively.

We can also see that FDX currently has a PEG ratio of 0.81. 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 industry currently had an average PEG ratio of 1.49 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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