This One Stock Is Now the Market’s Biggest Discount
It’s hard to find value in a market that’s setting new highs day after day…
But today, I’ve done just that.
I’ve been bargain hunting in the shipping sector – which is currently trading at a discount to the S&P 500.
Specifically, the S&P 500 trades at 20X 2022 earnings.
But shipping companies like XPO Logistics (NYSE: XPO) and United Parcel Service (NYSE: UPS) trade at just 17X 2022 earnings – a much lower rate.
With that in mind, let’s look at performance…
Over the last 52 weeks, the S&P 500 has gained 33.99%, XPO has gained 40.79% and UPS has gained 24.18%.
But nothing on the market right now compares to the value that’s available to you from FedEx Corp. (NYSE: FDX).
As you read this, FDX is trading at 11X earnings, making it around half as expensive as the S&P, relative to earnings. Not only that, but the stock is also down 8% thus far in 2021, enhancing its value even further.
To me, this makes FDX one of the cheapest stocks on the market right now.
Action Plan: If you want value, upside potential and the safety of one of the best-run companies on the planet – all rolled up into a single trade – then nothing right now compares to the opportunity you have with FedEx. I consider the shares a great buy at current levels – with a $300 price target by the first quarter of 2022.
NOTE: This morning, War Room members used this thesis to hit a winning trade on FDX. Are you ready to join us? If so, click the invitation below to see what being inside The War Room can do for you.
Monday Market Minute
- Infrastructure stocks are up – CLF and X are still cheap compared with peers and the overall market. Tracking.
- Members locked in double-digit gains on FDX this morning. In the never-ending search for value in this market, the logistics sector looks like a bargain.
- Last week, we saw huge earnings misses from stay-at-home darlings. The pandemic trade environment may be over, and we are taking advantage of that trend in The War Room.