Heres A Better Pick Over FedEx Stock

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We believe that Pfizer (NYSE:PFE) shares are a better bet for now than FedEx (NYSE:FDX) shares, although they are more than twice as expensive and 0.3 times FedEx FDX 3's closing earnings. 3 times. The difference in the valuation of the two companies can be explained by higher growth in PFE's top line and Pfizer's profitability, as discussed below. Although the two companies belong to different industries, we compare them due to their similar revenue base.

Looking at stock returns, Pfizer's 40% return is significantly better than FedEx's -29% change over the last 12 months. This compares to a -1% move in the broader S&P 500. While FedEx shares have been hurt by rising costs and recession fears, Pfizer shares have been rewarded by massive sales of a Covid-19 vaccine and antiviral pills. Whether or not both companies turn a profit, Pfizer is expected to outperform them. We have something to compare, և in the next section we will discuss why we believe PFE stock will outperform FDX stock over the next three years. In our analysis of FedEx and Pfizer Interactive Panel, we compare several factors including historical sales growth, profitability and valuation multiples. What stocks are better to choose? Parts of the analysis are summarized below.

1. Pfizer sales growth was strong

  • Pfizer Starler's 99% revenue growth over the last 12 months exceeds FedEx's 16%.
  • Looking back, FedEx's revenue rose 9% to $84.0 billion in 2021 from $65.5 billion in 2018, while Pfizer's 2018 revenue rose to $81.3 billion in 2021 from $40.8 billion. In the past year.
  • Pfizer's sales have surged in recent years due to strong demand for a Covid-19 vaccine. However, as vaccine levels rise worldwide, demand for the Covid-19 vaccine is expected to decline, impacting Pfizer's sales growth in the coming years. However, sales growth in 2022 will be supported by the sale of Covid-19 antiviral pills.
  • For FedEx, revenue growth in recent years has been driven by housing restrictions and the spread of the Covid-19 virus, which has led to an increase in OTC support online orders.
  • Our FedEx Sales և Pfizer Sales panels provide additional information about the company's sales.
  • Over the next three years, FedEx's revenue growth is expected to outstrip that of Pfizer, which is expected to face the collapse of its Covid-19 vaccine. The following table presents the revenue projections of the two companies for the next three years. This shows a CAGR of 3.8% for FedEx compared to a CAGR of 1.6% for Pfizer according to Trefis machine learning analysis.
  • Please note that when forecasting future profits, we have different approaches for companies negatively affected by Covid, համար and for companies that are not or not positively affected by Covid. For companies impacted by Covid, we look at the quarterly sales recovery trajectory to project a recovery to Covid sales. Beyond the recovery point, we use the CAGR we observed in the three years prior to Covid to model normal returns. For companies that show positive sales growth during Covid, we are looking at the average annual growth of Covid before, with a certain weight of C 12 months after the Covid rise.
  • 2. Pfizer is more profitable ունի has a better credit position

  • Pfizer's 26% operating margin over the last 12 months is much better than FedEx's 8%.
  • This is comparable to the pre-epidemic rates of 14% և 8% in 2019, respectively.
  • Pfizer's 37% free cash flow margin is better than FedEx's 10%.
  • Our FedEx Operating Income Dashboard և Pfizer Operating Income Dashboard has more details.
  • In terms of financial risk, FedEx's debt as a percentage of equity is only 12-80% higher than Pfizer's, while 7% of its cash interest holdings are more than 1% of the latter, meaning Pfizer owes more . and FedEx has more money.
  • 3. Network of everything

  • We see that Pfizer showed better revenue growth, became more profitable, has a better debt position. FedEx, on the other hand, is available with a relatively low rating.
  • However, given the P/S approach given the high volatility of P/E և P/EBIT, we believe that Pfizer is currently the best option for both, or more expensive than both.
  • The following table is a FedEx summary of our Pfizer earnings մեր on earnings expectations for the next three years և shows FedEx's expected earnings of 4% compared to Pfizer's expected return of 22%.
  • While PFE shares could outperform FDX, the Covid-19 crisis has created many price centers that could provide lucrative trading opportunities. For example, you might be surprised at how inaccurate the valuation of Medtronic's stock is compared to Moscow.

    For the first time since March 2020, when the Covid-19 outbreak led to a market crash, we could see a bear market drop in the stock market. We capture the main trends in the event of a major market crash և after analyzing our interactive Market Crash Dashboard.

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    FedEx (FDX) stock earnings analysis. Deep Buy?

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