FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services. The FedEx Ground segment provides small-package ground delivery services. The FedEx Freight segment offers less-than-truckload freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. In addition, the company offers supply chain management solutions; and air and ocean freight forwarding and cargo transportation, specialty transportation, customs brokerage, third party logistics and supply chain, and document and business solutions, as well as provides trade management tools and data. The company was founded in 1971 and is headquartered in Memphis, Tennessee.

FedEx выглядит как зрелый бизнес с сильной выручкой и устойчивым денежным потоком, но с рядом признаков, ограничивающих агрессивную переоценку. По мультипликаторам картина смешанная: P/S заметно ниже медианы отрасли, что поддерживает тезис о сравнительно умеренной оценке по выручке, тогда как P/B и P/FCF выше отраслевых ориентиров, а P/E уже не выглядит дешёвым после недавнего роста. Это говорит о том, что рынок частично уже заложил улучшение качества прибыли и денежного потока, поэтому потенциал дальнейшего расширения мультипликаторов ограничен. Рентабельность в целом неплохая: ROE и ROI находятся около медианы, gross margin очень высокий и стабильно держится на уровне выше 71%, но net margin и operating margin заметно слабее отрасли, что указывает на давление затрат и ограниченную операционную эффективность. Динамика маржинальности за 5 лет скорее стабильная, чем улучшающаяся, поэтому это не даёт сильного аргумента для повышения оценки. Долговая нагрузка остаётся выше отраслевой медианы: debt/equity повышен, long-term debt растёт, а total liabilities увеличиваются, что добавляет осторожности к прогнозу. При этом ликвидность выглядит приемлемо: quick ratio выше медианы и cash on hand существенно вырос, что смягчает долговой риск. Дивидендная доходность снизилась до нуля в последнем наблюдении, поэтому дивидендный фактор сейчас не поддерживает инвестиционный кейс. Сильная сторона FedEx — масштаб, рост выручки, высокий gross profit и улучшение денежной позиции; слабая — более скромная операционная маржа и неидеальная структура капитала. В сумме фундаментал скорее оправдывает умеренно консервативную корректировку вниз, чем повышение целевого ориентира. Для инвестора это означает, что компания остаётся качественным индустриальным активом, но текущая цена уже отражает значительную часть позитивных ожиданий, а пространство для быстрого апсайда ограничено.

FedEx Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно вырос. Рынок на стороне быков.

Medium index, slightly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

FedEx демонстрирует сильную выручку и ликвидность, но слабее отрасли по марже и долговой нагрузке; оценка выглядит уже частично отражённой в цене.

Pitney Bowes Inc. PBI appears to be positioning its shipping software business as a key growth driver. Recent management commentary suggests it could become the company’s next major growth engine. While traditional mailing operations continue to face secular pressures, the company is seeing encouraging momentum in software subscriptions, bookings and customer acquisition efforts.
During the first-quarter 2026earnings call CEO Kurt Wolf highlighted shipping software as the area with the greatest growth potential within the SendTech segment. Management is simplifying its portfolio of software offerings, reducing customer confusion and focusing resources on enhancing the most promising products. The company is also shifting toward a customer-centric development strategy, prioritizing features and services that directly address client needs rather than leading with technology alone.
Early signs of progress are already emerging. Pitney Bowes reported its first year-over-year increase in bookings in some time, while enterprise software subscriptions improved as sales teams exceeded targets. Management noted that stronger bookings not only support current revenues but also create recurring “stream” revenue opportunities in future periods through shipping-label and software-related services.
A unique advantage for Pitney Bowes is its banking operation. The company plans to leverage the bank to offer financing solutions and other value-added services to shipping software customers. Management believes this differentiates PBI from competitors, as few rivals possess an in-house banking platform capable of supporting customer cash-flow needs and providing attractive financing options.
While management remains cautious about predicting a precise timeline for accelerated growth, the combination of improving sales execution, rising subscriptions, streamlined products and banking-related opportunities suggests shipping software could become an increasingly important contributor to Pitney Bowes’ long-term growth strategy.
PBI’s Stock Price Performance & Valuation Trend
Shares of Pitney Bowes have increased 69% in the past three months, outperforming the S&P 500’s 9.8% rise. In the same time frame, other industry players like FedEx FDX and United Parcel Service UPS have declined 3.9% and increased 11.7%, respectively.
Price Performance
Image Source: Zacks Investment Research
PBI stock is currently trading at a discount compared with the S&P 500, with a forward 12-month price-to-earnings (P/E) ratio of 10.2, as evidenced by the chart below. Conversely, industry players, such as FedEx and United Parcel Service, have P/E multiples of 15.65 and 14.57, respectively.
P/E (F12M)
Image Source: Zacks Investment Research
Earnings Estimate Revision of PBI
PBI’s earnings estimates for 2026 and 2027 have trended upward in the past 60 days to $1.62 and $1.76 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 20% and 8.4%, respectively.
Image Source: Zacks Investment Research
PBI currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Will Shipping Software Become Pitney Bowes' Next Growth Engine?

In a shareholder-friendly move, FedEx Corporation’s (FDX) board of directors approved a dividend hike of a 5% increase in the annual dividend rate on FedEx common shares, following a one-time annual rate adjustment in connection with the spin-off of FedEx Freight.
The dividend increase and spin-off adjustment led to an annualized dividend rate of $4.88 for the transition period from June 1, 2026, through Dec. 31, 2026. With this updated annualized dividend rate of $4.88, FDX’s board announced a quarterly cash dividend of $1.22 per share, payable on July 7, 2026, to stockholders of record at the close of business on June 22, 2026.
FedEx Corporation Dividend Yield (TTM)
Claude F. Russ, FedEx Corp. enterprise vice president and interim chief financial officer, stated, "This dividend increase, coupled with our recent spin-off of FedEx Freight, signals our firm commitment to creating stockholder value. Our dividend is an important element of our disciplined and multifaceted approach to capital allocation."
The move reflects FDX’s intention to utilize free cash to enhance its shareholders’ returns. Notably, FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. During the first nine months of fiscal 2026, FedEx paid dividends worth $1.02 billion and repurchased shares worth $796 million. During fiscal 2025, FedEx paid dividends worth $1.33 billion and repurchased shares worth $3.02 billion. During fiscal 2024, FedEx paid dividends worth $1.26 billion and repurchased shares worth $2.50 billion. During fiscal 2023, FedEx paid dividends worth $1.18 billion and repurchased shares worth $1.50 billion. During fiscal 2022, FedEx paid dividends worth $793 million and repurchased shares worth $2.25 billion.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like FDX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario.
FDX’s management’s decision to increase its quarterly dividend payout reflects the company’s commitment to boosting shareholder value, apart from underlining confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact thisZacks Rank #3 (Hold) stock’s bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shareholder-Friendly Moves by Other Transportation Companies in 2026
FedEx is not the only player from the Zacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs. To name a few,on May 5, 2026, Expeditors International of Washington, Inc.’s EXPD board of directors approved a dividend hike of 5.1%, raising its quarterly semi-annual cash dividend from 77 cents per share to 81 cents. The raised dividend will be paid on June 16, 2026, to all its shareholders of record as of June 1. Additionally, in the month of February of this year, EXPD’s board has approved a new share repurchase program, which allows the repurchase of up to $3 billion of its shares. Since 2024, EXPD has returned almost $2 billion to shareholders in the form of dividend payments and share repurchases.Such moves reflect EXPD’s intention to utilize free cash to enhance its shareholders’ returns.
On Feb. 04, 2026 (concurrent with its fourth-quarter 2025 earnings release), Old Dominion Freight Line, Inc. (ODFL) board of directors approved a dividend hike of 3.6%, thereby raising its quarterly cash dividend to 29 cents per share ($1.16 annualized) from 28 cents ($1.12 annualized). The raised dividend will be paid out on Mar 18, 2026, to shareholders of record at the close of business on March 4. The move reflects ODFL’s intention to utilize free cash to enhance its shareholders’ returns.
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FedEx Updates Annual Dividend Following FedEx Freight Spin-Off

The Board of Directors of Nucor declared the regular quarterly cash dividend of $0.56 per share on Nucor's common stock. This cash dividend is payable on August 11, 2026 to stockholders of record on June 30, 2026 and is Nucor's 213th consecutive quarterly cash dividend.
Agree Realty today announced that its Board of Directors has authorized, and the Company has declared, a monthly cash dividend of $0.267 per common share. The monthly dividend reflects an annualized dividend amount of $3.204 per common share, representing a 4.3% increase over the annualized dividend amount of $3.072 per common share from the second quarter of 2025. The dividend is payable July 15, 2026 to stockholders of record at the close of business on June 30, 2026.
Applied Materials today announced that its Board of Directors has approved a quarterly cash dividend of $0.53 per share payable on the company's common stock. The dividend is payable on Sept. 10, 2026 to shareholders of record as of Aug. 20, 2026. The cash dividend is a key component of Applied's capital allocation strategy. In March 2026, Applied announced a 15-percent increase in the quarterly dividend per share, from $0.46 to $0.53, which more than doubled the dividend per share from four years ago and marked nine consecutive years of dividend increases. With the increase announced in March 2026, Applied has grown its dividend per share at a compound annual growth rate of 18 percent over the past decade. Over the past 10 fiscal years, the company has distributed nearly 90 percent of free cash flow to shareholders through dividends and share repurchases.
The Board of Directors of FedEx today approved a 5% increase in the annual dividend rate on FedEx common stock, after a one-time annual rate adjustment in connection with the spin-off of FedEx Freight. The dividend increase and spin-off adjustment result in an annualized dividend rate of $4.88 for the transition period covering June 1, 2026 through Dec. 31, 2026. Consistent with this update, the Board today also declared a quarterly cash dividend of $1.22 per share on FedEx Corp. common stock. The dividend is payable July 7, 2026, to stockholders of record at the close of business on June 22, 2026.
Benchmark Electronics today announced that its Board of Directors declared a quarterly dividend of $0.17 per share, payable on July 10, 2026, to shareholders of record at the close of business on June 30, 2026.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: NUE,ADC,AMAT,FDX,BHE

Key Points
FedEx recently raised its full-year guidance.
The company's spinoff will allow it to pay off debt.
FedEx is looking to cut costs significantly.
FedEx (NYSE: FDX) completed the spinoff of its FedEx Freight business (NYSE: FDXF) on June 1, making FedEx Freight a separate, less-than-truckload (LTL) business focused on short-distance deliveries. The point is to unlock shareholder value as both companies can focus on their own concerns.
FedEx operates more than 650 planes as the world's largest express air cargo carrier and delivers to more than 220 countries. Its shares are up more than 45% so far this year, but fell 17% on the first trading day since the spinoff, while FedEx Freight's shares dropped more than 6%.
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Despite the recent slide, there are three good reasons to buy FedEx stock now.
It has higher margins ahead
The move simplifies FedEx's cost-cutting plans to improve profitability. Managing a massive hybrid network of overnight air express, ground parcel, and heavy freight leads to complexity. By spinning off its freight division, FedEx can more easily introduce its Network 2.0 initiative, which combines its express and ground sorting networks while using artificial intelligence (AI) and automation to a greater extent.
The transportation company plans to close 475 of its shipping stations by the end of 2027 while making its deliveries more efficient, sending fewer delivery trucks to the same neighborhood. It said the plan will equal more than $2 billion in savings by the end of 2027.
FedEx in the third quarter revised its fiscal 2026 guidance to expect annual revenue growth of 6% to 6.5% and earnings per share (EPS) of $19.30 to $20.10, compared to $18.19 in 2025.
Once it clears those spinoff charges, the company is betting that businesses, particularly in business-to-business (B2B) shipping, will be willing to pay more for faster and more consistent delivery times.
The spinoff will allow FedEx to reduce debt
FedEx will keep 19.9% of FedEx Freight's shares, albeit only for a short while. The plan is to sell those shares, helping the company pay down the more than $22.8 billion in long-term debt. As of now, it has a debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) of 3.5, which reduces its flexibility. With less debt, FedEx will be able to buy back stock and improve its dividend.
FedEx will trade FedEx Freight shares directly to creditors to retire outstanding corporate bonds, avoiding the need to use cash flow to settle those debts.
It benefits from its connection to InPost
The last mile of deliveries is the most expensive part of shipping for companies, particularly in Europe. FedEx is leading a consortium to buy the Polish company InPost, which has more than 60,000 automated parcel lockers across Europe.
If FedEx can secure its 37% minority stake in InPost, it will have at its disposal a low-cost, high-density European delivery network that bypasses the doorstep entirely. In many cases, Europeans prefer to pick up packages at their local transit hubs or grocery stores on their own schedule rather than wait for a delivery van. The move can serve its customers better while reducing costs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is FedEx a Buy Following Its FedEx Freight Spinoff?

Pitney Bowes Inc. PBI is seeing improving trends within its SendTech segment, raising the question of whether stronger bookings can support a broader recovery in the business.
The segment has faced pressure for several years as traditional mail-related activity continued to decline. However, recent results suggest that some of those headwinds may be moderating. SendTech revenues declined less than 1% year over year in the first quarter of 2026, while bookings increased from the prior-year period for the first time in several years. Growth in paid software subscriptions also points to improving customer demand and a larger base of recurring revenues.
The improvement appears to be supported by several operational initiatives. Greater emphasis on customer retention, including outreach to customers considering cancellation and the use of predictive analytics to identify at-risk accounts, could help reduce customer losses. At the same time, renewed efforts around customer acquisition and sales execution may be contributing to stronger booking trends.
Shipping software is emerging as another area of focus. Pitney Bowes is simplifying its product offerings and aligning product development more closely with customer needs. The company is also leveraging its banking platform to provide financing-related solutions that many competitors cannot easily match. These efforts could enhance the value proposition of SendTech’s software offerings and support recurring revenue growth.
The significance of stronger bookings extends beyond the current quarter. New bookings create opportunities for future stream revenues, including software subscriptions and other recurring services. Improving sales pipelines and higher booking activity also suggest that customer engagement is moving in a favorable direction.
Although SendTech continues to operate in a challenging market, improving bookings, subscription growth and stronger sales activity indicate that business conditions may be becoming more favorable. Continued progress in these areas could determine whether the segment moves from stabilization toward sustainable growth.
PBI’s Stock Price Performance & Valuation Trend
Shares of Pitney Bowes have increased 70.1% in the past six months, outperforming the Zacks Computer and Technology sector’s 19.1% rise. In the same time frame, other industry players like FedEx FDX and United Parcel Service UPS have gained 18.6% and 15.4%, respectively.
Image Source: Zacks Investment Research
PBI stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 9.97, as evidenced by the chart below. Conversely, industry players, such as FedEx and United Parcel Service, have P/E multiples of 16.68 and 14.81, respectively.
Image Source: Zacks Investment Research
Earnings Estimate Revision of PBI
PBI’s earnings estimates for 2026 and 2027 have trended upward in the past 30 days to $1.62 and $1.76 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 20% and 8.4%, respectively.
Image Source: Zacks Investment Research
PBI currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
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Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
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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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Improving Bookings Support a SendTech Recovery at Pitney Bowes?

Key Points
Realty Income's high occupancy rates and established client base can continue to support its monthly dividend.
J.M. Smucker's coffee business should continue to support its growth despite concerns about its other products.
PepsiCo has listened to its customers, sparking a return to growth that has reinvigorated its business.
Dividend stocks, particularly those that consistently hike their dividend, tend to maintain reliable growth over decades under a variety of economic conditions. While they are rarely the fastest-growing stocks in terms of stock price appreciation, their consistency and rising dividends make them popular with income-oriented investors.
Today, dividend stocks in the S&P 500 (SNPINDEX: ^GSPC) offer an average dividend yield of 1%. While that may compare poorly to bank CDs, which sometimes offer rates above 4%, many of these stocks have dividend yields that match such rates. When also considering dividend growth and the likelihood of long-term stock price appreciation, these high-yield dividend stocks could last a lifetime while paying shareholders.
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1. Realty Income
When it comes to income generation, it is hard to argue against owning the monthly dividend company, Realty Income (NYSE: O), which owns more than 15,500 single-tenant, net leased properties.
Indeed, the prospect of rising interest rates may have discouraged investors, but Realty Income shows it can succeed under such circumstances. Moreover, it boasts a client base that includes Walmart, FedEx, and Dollar General. Having such clients has further stabilized the property and helped its occupancy rise to nearly 99%.
At today's share prices, its annual dividend of $3.25 per share yields 5.4%. That dividend has risen at least one time annually since its inception in 1994, delivering decades of passive income.
Also, it earned $4.26 per share in FFO income over the trailing 12 months, a measure of a REIT's free cash flow. Thus, the company should have no trouble covering its dividend and continuing the payout hikes.
Additionally, investors should avoid the pitfall of looking at its P/E ratio of 49 and assuming it is expensive. The $4.26 per share in FFO income is the critical measure. Thus, when calculating a price-to-FFO ratio, the stock trades at just 14 times FFO.
Under such conditions, investors can buy the stock now and collect a generous dividend while they wait for an improved stock performance.
2. J.M. Smucker
Investors may think of J.M. Smucker (NYSE: SJM) as a jelly company because of its flagship brand, Smucker's. Nonetheless, Smucker is a diversified packaged goods company that also derives revenue from brands like Hostess, Milk-Bone, and coffee brands like Folger's, Cafe Bustelo, and the grocery market for Dunkin'.
Admittedly, the stock has suffered as packaged good companies have struggled in an environment where consumers have gravitated toward fresh and organic foods. This occurred at the same time as commodity prices rose, compressing margins.
However, coffee remains a strong product category that helps boost its revenue. In the third quarter of fiscal 2026 (ended Jan. 31), sales rose by 7%. Also, it reported only a net loss due to goodwill and impairment charges, which are usually one-time events.
Furthermore, declines in the stock price have taken its price-to-sales (P/S) ratio to 1.2, well below the average of 1.6. Amid that low valuation, its annual dividend of $4.40 per share yields 4.4%. Since its $971 million in free cash flow was well above the $462 million dividend cost over the same period, that probably means its 29-year track record of payout hikes is on track to continue.
Finally, once J.M. Smucker moves past the aforementioned impairment charges, profitability should return. With the strength of the coffee market and the high-yielding, rising dividend, J.M. Smucker should again stand as a strong, under-the-radar dividend stock.
3. PepsiCo
Like Smucker, PepsiCo (NASDAQ: PEP) has struggled as a packaged goods company. Besides Pepsi, Tropicana, and Mountain Dew, company-owned brands include Lay's potato chips and Quaker Oats.
Fortunately, amid the challenges, PepsiCo has listened to consumers. To that end, it has changed the ingredients of some of its products and acquired more health-oriented brands such as Poppi.
The latest earnings report showed signs of progress, with sales rising 8% year over year in the first quarter of fiscal 2026 (ended March 21). That led to a 27% rise in net income.
Also, while the stock showed 8% growth for the year, it is trading at a near 30% discount to its five-year high. Consequently, its 22 P/E ratio is below the five-year average of 27.
That situation has made PepsiCo's dividend particularly attractive. At $5.92 per share annually, its dividend now yields 4%. Additionally, the $9.3 billion in free cash flow over the trailing 12 months covered the $7.7 billion in dividend costs. Given that the dividend has risen for 54 consecutive years, the increases are likely to continue.
Ultimately, considering the rising payout and the rebound in sales growth, PepsiCo again looks to be on track for success.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*
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Will Healy has positions in Realty Income. The Motley Fool has positions in and recommends J.M. Smucker, Realty Income, and Walmart. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Dividend Stocks Built to Last a Lifetime and Pay You the Whole Way

Key Points
FedEx recently spun off its freight business.
The stock is heading into earnings with its price at an all-time high.
Challenging macroeconomic conditions may weigh on the business this year.
Shares of logistics company FedEx (NYSE: FDX) have been soaring in value this year, up 45% entering trading on Tuesday. It recently completed the spin-off of its freight business. The move makes the remaining business leaner, and investors appear to be bullish on the split.
But whether it can continue on its rally may depend heavily on how it does when it reports earnings later this month. Its fourth-quarterearnings callis scheduled for June 23, and that could be a big day for the company in its first earnings report since completing the recent spin-off. Should you buy FedEx stock before then?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Expectations could be elevated for FedEx
When FedEx last reported earnings in March, it reported a solid 8% revenue growth, with its top line rising to $24 billion for the period ending Feb. 28. Its net income also showed strong 16% growth, climbing to nearly $1.1 billion. Although economic conditions have been challenging due to ongoing trade issues, FedEx's business has remained fairly resilient.
Meanwhile, now that the separation of the freight business is complete, investors may be looking for signs of improved efficiency and profitability in its guidance, which will undoubtedly be of key importance moving forward. Investors may, however, have effectively been pricing in a rosier forecast given the stock's surge this year, and thus, expectations may be high for FedEx as it releases its earnings in a few weeks.
Is FedEx stock a buy before earnings?
Although FedEx has been a hot stock to own this year, it's trading at an all-time high. Its price-to-earnings multiple of 18 isn't all that low and doesn't provide much margin of safety amid rising oil prices, challenging economic conditions, and still plenty of question marks around the conflict in the Middle East. Investors have priced in a lot of optimism into the stock's current valuation, which I don't think is justified. There are challenges and headwinds that could derail the stock's progress in the near term.
At the very least, you may want to take a wait-and-see approach and assess not only the company's performance in the most recent quarter, but also pay attention to what management is saying about the macroeconomic environment, as that could lend clues as to what lies ahead for the business.
FedEx's business remains robust, but at the stock's current valuation, I wouldn't rush to buy it given all the uncertainty in global markets these days.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy FedEx Stock Before June 23?

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? FedEx (FDX), which belongs to the Zacks Transportation - Air Freight and Cargo industry, could be a great candidate to consider.
This package delivery company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 22.62%.
For the most recent quarter, FedEx was expected to post earnings of $4.14 per share, but it reported $5.25 per share instead, representing a surprise of 26.81%. For the previous quarter, the consensus estimate was $4.07 per share, while it actually produced $4.82 per share, a surprise of 18.43%.
Price and EPS Surprise
For FedEx, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
FedEx currently has an Earnings ESP of +9.92%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
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Will FedEx (FDX) Beat Estimates Again in Its Next Earnings Report?

Key Points
FedEx spun off FedEx Freight to its shareholders today.
Now shareholders own a smaller FedEx -- but also a separate FedEx Freight.
FedEx itself will produce less revenue and profit going forward.
FedEx Corporation (NYSE: FDX) stock crashed nearly 19% through 11:15 a.m. ET this morning -- but don't panic. This apparent disaster isn't what meets the eye.
Instead of a sell-off, what you're seeing is a spin-off.
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FedEx delivers Freight to investors
Specifically, a spin-off of FedEx's less-than-truckload (LTL) -weight freight-hauling business, FedEx Freight (NYSE: FDXF), which became its own separate company today.
Each owner of FedEx stock receives one share of FedEx Freight common stock for every two shares of FedEx common stock they held as of the close of trading on May 15. All these combined add up to 80.1% of FedEx Freight's shares outstanding, with FedEx proper retaining -- for the time being -- 19.9% of the shares as a minority interest in its former subsidiary.
What it means for FedEx
Over the next 24 months, FedEx intends to dispose of the remaining 19.9% of FedEx Freight shares, which may put selling pressure on FedEx Freight stock. As for what FedEx proper investors can expect, well, last year FedEx Freight accounted for $8.9 billion of FedEx's $87.9 billion in total revenue -- so expect that to go away, reducing revenue by about 10.1%, and making it harder for FedEx to hit analysts' forecast goal of $93.7 billion in revenue this year.
FedEx Freight also produced $1.5 billion of FedEx's $5.2 billion in operating profit last year -- 28.5%, according to S&P Global Market Intelligence data -- so you can probably expect to see a decline in FedEx's profit margin without FedEx Freight around to support it.
On a brighter note, FedEx Freight profits have been declining the past two years, while FedEx proper's profits have been growing. In a perfect world, this trend would continue and a FedEx more focused on its core business would prosper.
Fingers crossed.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why FedEx Stock Just Dropped

In early trading on Monday, shares of MGM Resorts International topped the list of the day's best performing components of the S&P 500 index, trading up 11.7%. Year to date, MGM Resorts International registers a 33.6% gain.
And the worst performing S&P 500 component thus far on the day is FedEx, trading down 20.4%. FedEx is showing a gain of 13.5% looking at the year to date performance.
Two other components making moves today are Robinhood Markets, trading down 7.7%, and ServiceNow, trading up 9.8% on the day.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	20.59 25.01
Price/Sales	0.73 1.43
P/B	3.37 2.54
P/FCF	21.53 19.81

Indicator	TTM Median
ROE	15.76 15.54
ROA	4.98 6.17
ROI	9.13 9.42
Net Worth	96.39 1.51
Quick Ratio	1.44 1.15
Current Ratio	1.27 1.59

Indicator	TTM Median
Net Profit Margin	4.88 7.39
Operating Margin	6.21 10.20
Gross Margin	71.39 32.49
Return on tangible equity	20.59 26.43

Indicator	TTM Median
EPS	5.25 0.60
EPS Forecast	4.14 0.58
Revenue	23.47B 194.00M
Gross Profit	17.06B —
EBITDA	2.46B —

FedEx Corporation

Recent quarterly and TTM performance

Valuation

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Revenue