Investors have been pleased to see the stock market fare much better in 2023 than it did in 2022. Stock markets haven't yet returned to all-time highs, but the gains so far this year have clawed back a considerable portion of the ground lost in the bear market last year.

Yet many market participants still aren't convinced that the economy will cooperate in generating a robust growth environment for the companies in which they own shares. That's why so many investors pay close attention to quarterly financial reports, and this week, the two most important releases will come from FedEx (FDX -1.98%) and AutoZone (AZO 0.32%). Here's why and what you can expect to see from these two well-known businesses in their respective reports.

Will FedEx keep cooling off?

Shares of FedEx have risen by more than 40% so far in 2023. However, the stock has paused in its ascent during the summer months, easing back from its July highs and remaining short of its record levels from 2021.

FedEx has worked hard to sustain its long-term growth trends, but that has become more difficult for the shipping giant recently. Revenue in fiscal 2023, which ended May 31, was down almost 4% from fiscal 2022's levels, but efforts to contain costs and some favorable easing in fuel prices helped FedEx boost its earnings by about 8% to $15.48 per share for the year.

Yet FedEx has to deal with challenges on a couple of fronts. On one hand, some fear that recessionary pressures could put the brakes on consumer spending, particularly in areas like e-commerce in which FedEx plays a key role. However, investors are also concerned about competition from Amazon, which has started to offer third-party shipping services through its own proprietary transportation network once again.

Those following FedEx anticipate that the shipping giant will see revenue fall again on a year-over-year basis, but they're hopeful to see earnings continue to rise. Longer-term, FedEx will need to see improved fundamental conditions in the industry soon enough that it doesn't run out of efficiency-boosting tactics to keep its bottom line looking healthy. Some will also look at FedEx's shipping activity as a barometer for the health of the broader industrial economy.

AutoZone looks to drive higher

Elsewhere, shares of AutoZone have had a more turbulent time in 2023. The stock is up just 4% year to date, but significant swings in both directions have shown the level of uncertainty investors have in the auto parts retailer's business.

AutoZone has held its own relatively well even in uncertain times. Both revenue and net income have inched higher looking back 12 months compared to the 2022 fiscal year that ended last Aug. 31. Fiscal third-quarter results for the period ended May 6 featured a 6% rise in sales and a 9% gain in earnings. Consistent stock repurchases have also lowered the number of AutoZone shares outstanding, helping to boost per-share business metrics significantly.

The key to success for AutoZone has been to concentrate on building scale and making its operations more efficient. Disruptions in the vehicle market have led many owners to hold on to cars and trucks longer, thereby boosting demand for the parts and components that AutoZone sells.

Investors expect to see continued modest growth from AutoZone, with revenue projected to rise 5% year over year and earnings of $45.12 per share for the quarter. Moreover, the release could give some guidance on how the broader transportation industry is faring in this period of economic uncertainty.