FedEx Corporation (FDX) Stock Delivers for Shareholders

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The upshot
Granted, if FedEx were netting $7.04 per share, today’s price might be appropriate. But priced north of 20.7 times net earnings today, FedEx stock looks overvalued even at the top end of its projections. Meanwhile, free cash flow at the company continues to lag reported net income, and with FedEx promising to ramp capital spending back up to $4 billion annually in the current fiscal year, cash generation could be weak again this year.

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Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends FedEx.

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