Breaking News

Transport ETFs In Focus On FedEx Earnings Beat

By Zacks Investment ResearchStock MarketsJun 25, 2019 10:05PM ET
Transport ETFs In Focus On FedEx Earnings Beat
By Zacks Investment Research   |  Jun 25, 2019 10:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

After the closing bell yesterday, transport bellwether FedEx (NYSE:FDX) reported robust fourth-quarter fiscal 2019 earnings. Although the courier company’s bottom line topped the Zacks Consensus Estimateit warned weakness in global demand and trade tensions will continue to weigh on the FedEx Express business (read: Go for Safe-Haven ETFs Amid Rising Geopolitical Risks).

Earnings per share came in at $5.01, trumping the Zacks Consensus Estimate by 20 cents but declining from the year-ago earnings of $5.91. Revenues rose 3% year over year to $17.81 billion but were in line with the consensus mark. For fiscal 2020, FedEx projects a low-single-digit percentage point increase in earnings per share before taking into account the effects of mark-to-market retirement plan accounting adjustments.

Following the mixed results, shares of FDX inched up 0.7% at the close in after-hours trading. FedEx has a Rank #3 (Hold) and an impressive VGM Score of A. It currently falls under a top-ranked Zacks industry (top 42%).

ETFs in Focus

The FedEx report has put transport ETFs — iShares Dow Jones Transportation Average Fund IYT, SPDR S&P Transportation (NYSE:XTN) ETF XTN and First Trust Nasdaq Transportation ETF FTXR — in focus. All these funds currently have a Zacks ETF Rank #4 (Sell) (see: all the Industrials ETFs here).


The ETF tracks the Dow Jones Transportation Average Index, giving investors exposure to a small basket of 20 securities. Of these, FedEx occupies the third position in the basket with 9.6% of the assets. Within the transportation sector, railroads, and air freight and logistics take the top two spots with 33.2% and 24.9% share, respectively, while airlines (18.3%) and trucking (16.7%) round off the next two. The fund has accumulated nearly $541.3 million in AUM while it sees a good trading volume of around 258,000 shares a day. It charges 43 bps in fees per year.


This fund follows the S&P Transportation Select Industry Index and uses almost an equal weight methodology for each security. Holding 43 stocks with AUM of $142.7 million, FedEx accounts for 2.6% share in the basket. The product is heavily exposed to trucking, which represents one-third of the portfolio while airlines and air freight & logistics also make up for 25.3% and 21.7%, share, each. The fund charges 35 bps in fees per year from investors and trades in a light volume of about 15,000 shares a day (read: A Look at Transport ETFs After Q1 Earnings).


This fund offers exposure to the 30 most-liquid U.S. transportation securities based on volatility, value and growth by tracking the Nasdaq US Smart Transportation Index. FedEx holds 0.6% share in the basket. FTXR has amassed $7 million in its asset base and charges 60 bps in annual fees. Average trading volume is meager at 2,000 shares.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>

SPDR S&P Transportation ETF (XTN): ETF Research Reports

iShares Transportation Average ETF (IYT): ETF Research Reports

FedEx Corporation (FDX): Free Stock Analysis Report

First Trust NASDAQ Transportation ETF (FTXR): ETF Research Reports

Original post
Transport ETFs In Focus On FedEx Earnings Beat

Related Articles

Transport ETFs In Focus On FedEx Earnings Beat

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email