Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Wednesday, November 21, 2007

Article Excerpt

FEDEX CORP. $91.71, New York symbol FDX, fell 9% after it warned that higher fuel costs would cut its earnings in the current quarter to $1.50 a share from earlier forecasts of $1.70 a share. However, in the past FedEx has successfully passed along its higher fuel charges to its customers, and will probably do so again. The stock now trades at just 14.0 times its likely fiscal 2008 earnings of $6.55 a share, which is cheap in light of FedEx’s leading market position and expanding international operations, particularly in Asia. FedEx is a buy. XEROX CORP. $16.09, New York symbol XRX, plans to resume dividend payments after suspending them in 2001 as part of a restructuring. It will pay the first quarterly dividend of $0.0425 a share on January 31, 2008, which implies a yield of 1.1%. Xerox is a buy. HEWLETT-PACKARD CO. $48.88, New York symbol HPQ, earned $0.86 a share before unusual items in its fourth fiscal quarter ended October 31, 2007,…