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Five volatile stocks worth the risk

FedEx

Shipping giant FedEx (FDX) closes out our list, and the stock trades with a high beta of 1.49. Improvements in the overall economy bode well for the company, as does the growing role of e-commerce in the retail sector. Amazon (AMZN) has radically altered the face of retail, and now all the traditional brick-and-mortar retailers like Wal-Mart (WMT) and Target (TGT) are scrambling to improve their online presence to keep pace. As retailers invest heavily into their e-commerce business, shipping companies will enjoy growing demand for their services. The stock has a P/E of 29.7, which is a bit high, but analysts see earnings growing 10.6% during the current year, and an additional 13.8% in 2018. FDX trades at $209.16, which is basically in-line with analysts’ $211.50 price target, but if the company is able to hit its growth estimates moving forward, analysts will start lifting their targets and the stock should easily build on its recent gains.

fdx170613

Chart courtesy of www.stockcharts.com

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Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.