Stocks Review: Adobe & FedEx

The two big earnings reports this week were Adobe (ADBE) and FedEx (FDX). 

Adobe posted earnings growth of 25% for fiscal Q3, once again beating Wall Street expectations.

On revenue growth of 14%, which also beat expectations. The company also raised guidance slightly above expectations. Altogether a strong report.

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As I write this, the stock is trading up about 2%. Most likely a result of a lot of good news already priced into the stock. It trades roughly 45x forward earnings and is up about 50% year to date.

Long term I like a lot of what the company is doing, the consistency, and their competitive advantages. A pullback in the vicinity of $380-400 level be ideal, but it might not get there unless/until we get a correction in the broader market.

I wasn’t planning on mentioning FDX, but the results were impressive enough to deserve inclusion.

FDX reported a record high quarterly revenue – on growth of 13% – on earnings growth of 60%, which both far surpassed expectations.

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The stock is up 9% this morning and looks poised to retest all-time highs in the $265 range. Like ADBE, a lot of good news is currently priced in.

Disclosure: I own Adobe, its actually grown into my biggest non – FAANG position, but I don’t own FedEx (actually prefer UPS).

Disclaimer: None.

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