Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, December 21, 2007

Article Excerpt

FEDEX CORP. $94.29, New York symbol FDX, earned $1.54 a share in its second fiscal quarter ended November 30, 2007, down 6.1% from $1.64 a year earlier. Higher fuel costs and weaker profits at its domestic less-than-truckload operations offset strong overseas growth. Revenue rose 6.2%, to $9.45 billion from $8.9 billion. The company has started passing along its rising fuel costs to its customers, but it will take several weeks before these surcharges take effect. The stock now trades at 14.4 times its likely fiscal 2008 earnings of $6.55. That’s reasonable in light of its expanding international operations, particularly in Asia. FedEx is a buy. GENERAL MILLS INC. $58.06, New York symbol GIS, earned $390.5 million in its second fiscal quarter ended November 25, 2007, up 1.3% from $385.4 million a year earlier. Per-share earnings rose 5.6%, to $1.14 from $1.08, due to fewer shares outstanding. The latest quarterly earnings included a $0.04 a share charge stemming from a recall of frozen pizza…