Fidelity Low-Priced Stock Fund (FLBSX)

Overview

The fund primarily focuses on investing in common stocks, strategically allocating at least 80% of its assets to low-priced stocks. These stocks are defined as those with a market price at or below $35 per share, or with an earnings yield that meets or exceeds the median for the Russell 2000® Index. This investment strategy often leads to the selection of small and medium-sized companies, providing opportunities for growth and potential profitability.

While the primary focus remains on low-priced stocks, the fund also has the flexibility to invest in stocks that do not meet this pricing criterion. This includes exploring both domestic and foreign issuers, thus diversifying the portfolio further. The fund adeptly navigates between "growth" stocks, which have the potential for substantial earnings increases, and "value" stocks, which are those perceived to be undervalued in price compared to their intrinsic worth, allowing for a balanced investment approach.

Products and Services

• Common Stocks

  The fund primarily invests in common stocks, which represent ownership in a company and offer participation in its growth and success. This includes potential capital gains and dividends, providing investors with the opportunity to benefit from the market’s performance.

• Low-Priced Stocks

  The cornerstone of the fund’s investment strategy, low-priced stocks are those trading at or below $35 per share or demonstrating an earnings yield at least equal to the median earnings yield of the Russell 2000® Index. Investing in these stocks is aimed at capitalizing on perceived market inefficiencies and opportunities for valuation correction.

• Growth Stocks

  Through investments in growth stocks, the fund seeks companies expected to grow at an above-average rate compared to their industry or the overall market. These stocks are often characterized by high earnings growth projections, even if they may have high price-to-earnings (P/E) ratios.

• Value Stocks

  The fund also invests in value stocks, which are shares of companies that appear to be undervalued in the market. These stocks typically have lower P/E ratios and higher dividend yields, indicating potential for appreciation as the market recognizes their true value.

• Diversity of Issuers

  The fund is not limited to domestic investments; it explores opportunities within foreign issuers as well. This global strategy enhances the potential for returns and provides a hedge against domestic market fluctuations, allowing investors to benefit from international growth trends.