A Good Opportunity for Income Investors?
When it comes to pandemic-proof plays, the most popular ones
have been e-commerce stocks, social media stocks, and other Internet stocks
that made the stay-at-home environment more bearable.
Indeed, these companies have generally performed much better
than others—including the traditional recession-proof sectors like consumer
staples and utilities.
But technology isn’t the only sector that has been
prospering during these extraordinary times. FedEx Corporation (NYSE:FDX), for
instance, has also provided huge returns to investors.
As a multinational delivery company that has been around
since 1971, FedEx doesn’t seem nearly as exciting as the tech names. But its
share-price performance has been nothing short of impressive.
Take a look at the chart below. Before the COVID-19-induced
stock market crash last year, FedEx stock was trading around $160.00 per share.
Today, it’s trading at more than $295.00 per share. That’s an increase of more
than 84%!
And for investors who were buying the dip at about $100.00
per share during the sell-off in March 2020, the return would be nearly 200%.
Again, we’re not talking about some exciting tech play or
“next-big-thing” industry. We’re looking at the returns from a five-decade-old
courier.
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