Is FedEx (FDX) Stock Outpacing Its Transportation Peers This Year?
Here is how FedEx (FDX) and Hub Group (HUBG) have performed compared to their sector so far this year.
Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. FedEx (FDX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
FedEx is one of 140 individual stocks in the Transportation sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. FedEx is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FDX's full-year earnings has moved 6.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, FDX has moved about 2.4% on a year-to-date basis. Meanwhile, the Transportation sector has returned an average of 1% on a year-to-date basis. This means that FedEx is outperforming the sector as a whole this year.
One other Transportation stock that has outperformed the sector so far this year is Hub Group (HUBG). The stock is up 2.3% year-to-date.
The consensus estimate for Hub Group's current year EPS has increased 11.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, FedEx belongs to the Transportation - Air Freight and Cargo industry, a group that includes 5 individual stocks and currently sits at #11 in the Zacks Industry Rank. On average, stocks in this group have gained 1.5% this year, meaning that FDX is performing better in terms of year-to-date returns.
On the other hand, Hub Group belongs to the Transportation - Services industry. This 29-stock industry is currently ranked #94. The industry has moved -0.9% year to date.
FedEx and Hub Group could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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
FedEx Corporation (FDX): Free Stock Analysis Report
Hub Group, Inc. (HUBG): Free Stock Analysis Report
To read this article on Zacks.com click here.