FDX

Investing Strategies Falling Knives
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FedEx sank under $200 yesterday before bouncing back a little today. It is currently trading at a ttm PE of 11, and has been growing EPS at 8.5% over the past five years. They averaged about $15/sh in earnings over the past five years and look set to hit around $20 this year. VL has them earning $26.50 within 5 years, so they are trading at under 7 times future earnings. Certainly there is some justified worry about the rapidly rising oil prices impacting costs and, ultimately, the bottom line, but this would seem to be a temporary hiccup. I found the recent prices too attractive not to dip my toe with a 1% position.

PP

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Nice idea, thanks.
I’ll look into it more…

Jim

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I just closed it around $240 in Jan. Of course I failed to sell @$300 in two earlier opportunities’. Wages, fuel cost, reduced international shipping, Europe (through their TNT acquisition) all are headwinds. I have lot of other names that I didn’t sell or the new names like PYPL where I am sitting with significant loss. Not in a hurry to get back.

I expect them to revise the earnings.

PS: Full disclosure I missed bulk of the DLTR move because I was waiting for the supply chain issues to turn around.

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