FedEx (FDX) Surpasses Market Returns: Some Facts Worth Knowing

Core Viewpoint - FedEx is experiencing a challenging month with a significant decline in share price, while upcoming financial results are anticipated to show year-over-year earnings growth despite a slight revenue decrease [1][2]. Financial Performance - FedEx's stock closed at $210.33, reflecting a 0.23% increase, outperforming the S&P 500's 0.15% gain [1] - The company is projected to report earnings of $6.03 per share, representing an 11.46% year-over-year growth [2] - Quarterly revenue is expected to be $21.8 billion, down 1.41% from the previous year [2] - Full-year earnings are estimated at $18.21 per share, with revenue projected at $87.46 billion, indicating a 2.3% increase in earnings and a slight revenue decrease of 0.23% year-over-year [3] Analyst Estimates - Recent changes in analyst estimates for FedEx suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Consensus EPS estimate has seen a 0.07% increase over the last 30 days, with FedEx currently holding a Zacks Rank of 3 (Hold) [6] Valuation Metrics - FedEx has a Forward P/E ratio of 11.52, which is lower than the industry average of 12.7, indicating a valuation discount [7] - The company has a PEG ratio of 1.08, compared to the industry average of 1.36, suggesting a more favorable growth outlook relative to its valuation [7] Industry Context - The Transportation - Air Freight and Cargo industry, which includes FedEx, has a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [8] - Strong industry rankings correlate with better performance, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]