Transportation Industry Underperformer Of The Day: FedEx Corporation (FDX)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

FedEx Corporation ( FDX) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole was unchanged today. By the end of trading, FedEx Corporation fell $1.29 (-1.3%) to $96.66 on average volume. Throughout the day, two million shares of FedEx Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $96.56-$98 after having opened the day at $97.87 as compared to the previous trading day's close of $97.95. Other companies within the Transportation industry that declined today were: Arkansas Best Corporation ( ABFS), down 7.9%, Excel Maritime Carriers ( EXM), down 5.4%, Radiant Logistics ( RLGT), down 4.2%, and Euroseas ( ESEA), down 4.2%.
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FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx Corporation has a market cap of $30.21 billion and is part of the services sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 6.8% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate FedEx Corporation a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates FedEx Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Era Group ( ERA), up 23.1%, Frozen Food Express Industries ( FFEX), up 6.7%, Rand Logistics ( RLOG), up 5%, and JetBlue Airways Corporation ( JBLU), up 2.6%, were all gainers within the transportation industry with Delta Air Lines ( DAL) being today's featured transportation industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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