FedEx: Still A Buy Despite 14% Share Jump

Jun. 21, 2022 5:23 PM ETFedEx Corporation (FDX) StockFDX4 Comments
Frederik Mueller
10.38K Followers

Summary

  • My DCF Model shows that FedEx is currently still undervalued despite the fact that FedEx shares jumped by 14% on June 14.
  • The DCF Model I have used calculates a fair value of $297 for FedEx. This still results in an upside of 28.1%.
  • The High-Quality Company ((HQC)) Scorecard for long-term investors I have developed gives FedEx a rating of 66 out of 100 points.
  • FedEx’s overall scoring according to the HQC Scorecard shows that the company is currently attractive in terms of risk and expected compound annual rate of return.

FedEx Cargo Jet

DaveAlan/iStock Unreleased via Getty Images

Investment Thesis

  • Despite the fact that FedEx (NYSE:FDX) shares jumped about 14% on June 14 (the biggest one-day gain since 1986), the company remains an appealing investment for long-term investors.
  • According to the HQC

This article was written by

10.38K Followers
I specialize in constructing investment portfolios aimed at generating additional income through dividends. My focus lies on identifying companies with significant competitive advantages and strong financials that can provide you with an attractive Dividend Yield and Dividend Growth, thus enabling you to augment your dividend income annually. By combining high Dividend Yield and Dividend Growth companies, you can gradually reduce your dependence on the broader stock market fluctuations.I also assist you in achieving a well-diversified portfolio across various sectors and industries. This diversification strategy aims to minimize portfolio volatility and mitigate risk. I also suggest incorporating companies with a low Beta Factor, which further contributes to reducing the overall risk level of your investment portfolio. My suggested investment portfolios commonly consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction.The selection process for high dividend yield and dividend growth companies within the investment portfolio is meticulously curated. I prioritize the pursuit of total return, encompassing both capital gains and dividends, rather than solely focusing on dividends in isolation. This approach ensures that your portfolio is designed to maximize returns while considering the full spectrum of potential income sources. By leveraging my expertise, you can benefit from a well-crafted investment portfolio that aims to generate extra income through dividends, while reducing risk through diversification, and prioritizing total return.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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