Although I have tremendous respect for the business that FedEx (NYSE:FDX)
has built, the same cannot be said of my opinion of most analysts'
models and valuations for this company. FedEx has long struggled to
deliver good free cash flow (FCF)
generation, and although I think the company's new efficiency plans
will produce better results, there's a gulf between “better” and “good”.
That said, FedEx shares have underperformed the market for about three
years running and now don't seem particularly expensive. While I would
have some concern that sell-side
analysts are still setting too high a bar for the company (sowing the
seeds for future disappointment), there's at least a buy case to be made
today.
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http://www.investopedia.com/stock-analysis/061913/fedex-not-particularly-expensive-analysts-still-too-positive-fdx-ups-odfl-utiw.aspx
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