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Why FedEx (FDX) is a Top Value Stock for the Long-Term

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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FedEx (FDX)

Based in Memphis, TN, FedEx Corporation is the leader in global express delivery services. The company, founded in 1971, provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.

FDX boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of FedEx are trading at a forward earnings multiple of 14.7X, as well as a PEG Ratio of 1.2, a Price/Cash Flow ratio of 8X, and a Price/Sales ratio of 0.7X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.22 to $17.70 per share. FDX has an average earnings surprise of 8.1%.

Investors should take the time to consider FDX for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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FedEx Corporation (FDX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research