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FedEx (FDX) Beats Stock Market Upswing: What Investors Need to Know
FedExFedEx(US:FDX) ZACKSยท2025-08-08 23:15

Core Viewpoint - FedEx is experiencing a mixed performance in the stock market, with a recent increase in stock price but a decline over the past month, while upcoming earnings are anticipated to show modest growth in both EPS and revenue [1][2][3]. Company Performance - FedEx closed at $228.05, up by 1.51% from the previous trading session, outperforming the S&P 500's gain of 0.78% [1]. - Over the past month, FedEx's stock has decreased by 5.89%, underperforming the Transportation sector's loss of 2.05% and the S&P 500's gain of 1.86% [1]. Earnings Estimates - The upcoming earnings release is expected to show an EPS of $3.71, reflecting a growth of 3.06% year-over-year, with revenue projected at $21.76 billion, a 0.84% increase from the same quarter last year [2]. - For the full year, earnings are estimated at $18.49 per share and revenue at $89.4 billion, indicating increases of 1.65% and 1.68% respectively from the previous year [3]. Analyst Sentiment - Recent changes in analyst estimates for FedEx are seen as positive indicators of the company's business operations and profit generation capabilities [3]. - The Zacks Consensus EPS estimate has increased by 0.3% over the past month, and FedEx currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - FedEx is trading at a Forward P/E ratio of 12.15, which is below the industry average of 13.15, indicating a valuation discount [6]. - The company has a PEG ratio of 1.17, compared to the industry average of 1.57, suggesting a favorable growth outlook relative to its valuation [7]. Industry Context - The Transportation - Air Freight and Cargo industry, which includes FedEx, ranks 201 out of over 250 industries, placing it in the bottom 19% [8]. - The Zacks Industry Rank indicates that top-rated industries tend to outperform lower-rated ones by a factor of 2 to 1 [8].