FedEx Corp. equity traded lower on Thursday as the logistics giant prepares to disclose its fiscal third quarter results following the market’s closing bell.

The company’s valuation climbed to a record intraday peak on February 27, completing a 36% year-to-date surge that positioned it among the S&P 500 Index’s top 25 performers.

However, FedEx shares have since dropped by roughly 10%, placing them within the bottom 30% of the index as investor anxieties regarding the US-Iran conflict and escalating petroleum costs eclipse optimism over potential interest rate cuts and increased tax rebates stimulating retail activity.

At 12:43 p.m. EDT, FedEx Corp. stock was trading at $346.13, down $3.61, or 1.03%. On Wednesday, it closed at $349.74.

Stakeholders maintain elevated expectations given the stock’s recent trajectory. The rally propelled FedEx to a market capitalization of nearly $82 billion, surpassing rival United Parcel Service Inc. for the first time.

The stock currently trades at nearly 16 times projected 12-month earnings, exceeding its ten-year mean of 13.

The delivery giant is widely regarded as an economic bellwether because its performance mirrors the global and domestic movement of commodities.

Consequently, its financial reports often signal broader trends beyond the delivery sector.

Because FedEx’s fiscal third quarter concluded on February 28 — the date hostilities commenced — these figures will illustrate the economic landscape immediately preceding the geopolitical shock.

FedEx Earnings Expectations

Analysts’ consensus estimates suggest the corporation will announce a 6% rise in quarterly revenue to $23.5 billion, alongside a more than 7% contraction in adjusted earnings per share to $4.17.

Comments on FedEx’s outlook during the earnings call may offer “some early understanding as to how the last two weeks of energy price action is or is not changing behavior,” Gina Martin Adams, chief market strategist at HB Wealth Management, according to Bloomberg.