Fedex Corporation (NYSE:FDX) is expected to release its latest quarterly results this week. The logistics company has been busy during the pandemic as a growth in online shipping has meant more shipments being transported across the world.
In its most recent results, released on Sept. 15, Fedex reported sales of $19.3 billion for the first quarter of fiscal 2021, which grew 13% year over year. The growth was primarily driven by its ground segment, where sales were up 36%. Its express segment saw more modest growth, rising by 8% year over year. The stronger top line also led to a big improvement on the bottom line, where net income of $1.2 billion rose by 67%.
This coming quarter will be for the period up until the end of November. And with COVID-19 cases rising of late and people remaining indoors, there's little reason to doubt it'll be another strong quarter for Fedex.
The only question is whether the stock has gotten too expensive, as shares of Fedex are up over 90% this year. Today, the stock trades at a price-to-earnings multiple of 44 but on a forward basis that falls to about 20. Fedex also offers investors a modest dividend that yields 0.9% annually.
With online shopping trends looking to remain strong, Fedex's business is still in solid shape.
That's why although the stock has already achieved incredible gains this year, more could still be on the way as people continue to stay at home and as vaccines get shipped all over the country.
