FedEx updated October 4, 2017

FedEx is updated and is rated (lower) Buy at $223 (yesterday’s closing price).

FedEx has achieved strong earnings per share growth in the past few years. I focus on earnings adjusted for certain one-time or acquisition-related costs. The shares are worth considering but are not any huge bargain. For new positions, I would take a half or quarter position now and would be prepared to add to that on a dip.

FedEx is up about 16% since our last update of last December when it was also rated (lower) Buy. Looking back, our track record on this stock has been poor. On at least two occasions in the past we rated it Sell after some poor results and it went on to do quite well. In other cases it looked like a Buy based on results and then did not do well. Buying and holding (or better, adding on dips) would have worked out okay. The company has done well long term but has had volatility that has been difficult to predict.