FedEx Corporation (FDX) Flagged As Today's Pre-Market Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified FedEx Corporation ( FDX) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified FedEx Corporation as such a stock due to the following factors:

  • FDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $252.3 million.
  • FDX traded 18,598 shares today in the pre-market hours as of 7:38 AM.
  • FDX is down 2.1% today from yesterday's close.

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More details on FDX:

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. The stock currently has a dividend yield of 0.4%. FDX has a PE ratio of 27.6. Currently there are 12 analysts that rate FedEx Corporation a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for FedEx Corporation has been 2.4 million shares per day over the past 30 days. FedEx has a market cap of $43.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.15 and a short float of 1.4% with 2.26 days to cover. Shares are up 50.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant 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, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 51.97% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FDX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FDX's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, FDX has a quick ratio of 1.83, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $929.00 million or 2.87% when compared to the same quarter last year. Despite an increase in cash flow, FEDEX CORP's cash flow growth rate is still lower than the industry average growth rate of 22.16%.

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