Amazon accounted for more than a fifth of FedEx’s revenue last year. Analysts have set a low bar for the company’s first-quarter revenue but expect to see a year-over-year increase in profit. FedEx reports results late Wednesday.
Analysts are somewhat bullish on the stock. Of 32 brokerages covering it, 13 have a Hold rating and 18 have a Buy or Strong Buy rating. At a share price of around $249.00, the upside potential based on a median price target of $275.50 is 10.6%. At the high price target of $312.00, the upside potential is 25.3%.
The consensus fiscal first-quarter revenue estimate is $21.84 billion, down 0.4% sequentially and by 6.0% year over year. Adjusted EPS are forecast at $3.77, down 23.7% sequentially but up 9.6% year over year. For the full 2024 fiscal year ending next May, analysts expect EPS of $17.69, up 18.2%, on sales of $90.03 billion, down 0.1%.
FedEx stock trades at 14.1 times expected 2024 EPS, 11.3 times estimated 2025 earnings of $22.06 and 9.9 times estimated 2026 earnings of $25.19 per share. The 52-week trading range is $141.92 to $270.95. FedEx pays an annual dividend of $4.82 (yield of 1.93%). Total shareholder return for the past year was 58.40%.
KB Home
Homebuilder KB Home (NYSE: KBH) posted its 52-week low last September, and the share price has increased by about 70%. Since posting a 52-week high in mid-July, however, the share price has dropped by 12.7%. The company reports quarterly results after Wednesday’s closing bell.
The homebuilder has profited from homeowners staying put in their homes and mortgages of less than 4% forcing buyers to look at new homes. As someone once said, however, if something cannot last forever, it will not. Analysts have not expected much in the past couple of quarters, and that is exactly what KB delivered.
Of 15 analysts covering the stock, six have a Buy or Strong Buy rating and eight more have Hold ratings. At a share price of around $48.00, the implied gain based on a median price target of $61.00 is 27.1%. At the high price target of $65.00, the upside potential is 35.4%.
For the company’s third quarter of fiscal 2023, analysts anticipate sales of $1.46 billion, down 17.3% sequentially but 2.9% higher year over year. EPS are forecast to fall by 26.7% sequentially to $1.46 and plunge from $2.91 in the year-ago quarter. The consensus estimate for the fiscal year ending in November calls for EPS of $6.46, down 29.6%, on sales of $6.15 billion, down 10.9%.
KB Home stock trades at 7.5 times expected 2023 EPS, 6.7 times estimated 2024 earnings of $7.20 and 6.4 times estimated 2025 earnings of $7.51 per share. The 52-week range is $25.30 to $55.37. KB Home pays an annual dividend of $0.80 (yield of 1.67%). Total shareholder return for the past 12 months is 72.07%.
Originally published at 24/7 Wall St.
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