FEDEX CORP. $159 - New York symbol FDX

FEDEX CORP. $159 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 283.2 million; Market cap: $45.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.5%; TSINetwork Rating: Average; www.fedex.com) continues to benefit from a recent cost-control plan and the rise of online shopping, which has boosted demand for its package-delivery services.

In the first quarter of its 2015 fiscal year, which ended August 31, 2014, FedEx’s revenue rose 6.0%, to $11.7 billion from $11.0 billion a year earlier. Earnings gained 23.9%, to $606 million from $489 million. FedEx is an aggressive buyer of its own stock. As a result, its earnings per share jumped 37.3%, to $2.10 from $1.53.

The company expects to earn $8.50 to $9.00 a share for all of fiscal 2015, and the stock trades at 18.2 times the midpoint of that range. That’s an attractive multiple, particularly as FedEx is raising its shipping rates in January 2015.

FedEx is a buy.

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Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

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Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

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One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

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