FedEx Valuation ‘Historically Low,’ Analyst Says
Online Producer
If you’re shopping for shipping stocks, one company stands out to a “Fast Money” analyst: FedEx.
Urs Dur, SVP and senior analyst at Lazard Capital Markets, on Wednesday said he liked the company’s international exposure and growth, along with strong holiday ecommerce positioning.
“We do see good trade globally,” he said. “It doesn’t look recessionary right now at all if you look at the pure numbers.”
Dur said FedEx’s valuation was historically low from the perspective of a “very traditional” EPS and EBITDA.
Ahead of its Thursday earnings call, FedEx shares closed down 2.1 percent at $77.29.
Dur, who set a target price of $100 for Fedex, said other stocks to watch included:
- UPS: Dur called it “an excellent buy.”
- Expeditors International: “It’s asset-light. They’ve been having great top-line growth for the last decade, and their margins keep improving. Unbelievable balance sheets.”
- Seaspan: Dur liked that it recently announced a massive stock buy-back.
- Golar: The company, he said, “on a pull-back is very exciting here.”
Trader Brian Kelly said he also liked Golar on a pull-back because it’s in an industry that is growing.
“I love the company, but I just feel it’s a little expensive,” said trader Karen Finerman.
Pro Tim Seymour said he liked Kansas City Southern.
“It’s a name that has really outperformed the sector,” he said. “I think you have to be careful at these levels. People have totally abandoned any sense of cyclicality in this economy.”
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Trader disclosure: On Dec. 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns INTC; Adami owns AGU; Adami owns NUC; Adami owns BTU;
Brian Stutland
Stutland is long AAPL and short calls
Stutland is short TLT puts
Stutland is long INTC and short calls
Stutland is long CSCO and short calls
Stutland is long YHOO
Stutland is long IBM and short calls
Stutland Equities is a market maker holding hedged positions in VIX futures and options and VXX stock and options holding hedged positions in SPX futures and options and SPY stock and options
Urs Dur
Lazard Capital Markets LLC makes a market in GLNG securities.
Lazard Capital Markets LLC makes a market in SSW securities.
Lazard Capital Markets LLC makes a market in FDX securities.
Lazard Capital Markets LLC makes a market in UPS securities.
Jim Iuorio
Iuorio has calls VXX
Iuorio is short VXX and net long volume
Gordon Johnson
No disclosures
Dana Telsey
Neither Dana Telsey, Telsey Advisory Group LLC (TAG), nor any of its employees have holdings in Michael Kors.
TAG, currently and during the previous year, has not had Michael Kors as an investment banking client. TAG may seek such a relationship in the future (the next three months). TAG has not received other fees for services from Michael Kors.
TAG, its employees, Dana Telsey and her household have no other conflicts of interest.
Neither Dana Telsey nor TAG (including its affiliates) is, either now or at any time in the past twelve months, a party to any action or proceeding by or before, or under investigation with, any federal or state governmental body or authority, or any non-governmental regulatory body or authority, or subject to any action or proceeding before any state or federal court involving allegations of criminal conduct or fraud.
Peter Misek
Jefferies & Company, Inc makes a market in the securities or ADRs of Research in Motion, Inc.
Bill Strazzullo
Strazzullo is short gold
Strazzullo is long USO
