FedEx (FDX) Rises But Trails Market: What Investors Should Know

FedEx (FDX) ended the recent trading session at $250.41, demonstrating a +1.08% swing from the preceding day's closing price. This change lagged the S&P 500's 1.12% gain on the day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.The package delivery company's stock has dropped by 1.28% in the past month, exceeding the Transportation sector's loss of 5.31% and the S&P 500's loss of 4.13%.Market participants will be closely following the financial results of FedEx in its upcoming release. The company plans to announce its earnings on March 20, 2025. In that report, analysts expect FedEx to post earnings of $4.58 per share. This would mark year-over-year growth of 18.65%. At the same time, our most recent consensus estimate is projecting a revenue of $21.89 billion, reflecting a 0.86% rise from the equivalent quarter last year.For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.10 per share and a revenue of $87.65 billion, signifying shifts of +7.3% and 0%, respectively, from the last year.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for FedEx. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% lower. FedEx currently has a Zacks Rank of #3 (Hold).With respect to valuation, FedEx is currently being traded at a Forward P/E ratio of 12.97. For comparison, its industry has an average Forward P/E of 14.87, which means FedEx is trading at a discount to the group.It is also worth noting that FDX currently has a PEG ratio of 1.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.24 at yesterday's closing price.The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 225, placing it within the bottom 11% of over 250 industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks