QUARTERLY FUND REVIEW AS OF SEPTEMBER 30, 2017 Fidelity Small Cap Growth Fund Investment Approach Fidelity Small Cap Growth Fund seeks small-cap companies with above-average growth prospects and that are trading at reasonable valuations. We believe that changes in expectations about future earnings drive stocks, and companies with secure competitive positions in growing markets tend to experience positive earnings revisions over time. Within the inherently volatile small-cap growth universe, we believe the companies that one chooses to avoid are just as important as those one owns. As a result, we employ a valuation discipline and focus on higher-quality businesses, especially those that are sound allocators of shareholder capital. Lastly, we employ a disciplined portfolio construction framework, so as to focus the fund's risk/return profile on stock selection, our core competency. PERFORMANCE SUMMARY Cumulative 3 Month YTD 1 Annualized 3 5 10 / LOF 1 Fidelity Small Cap Growth Fund Gross Expense Ratio: 1.09% 2 8.74% 22.85% 25.02% 16.50% 16.31% 9.07% Russell 2000 Growth 6.22% 16.81% 20.98% 12.17% 14.28% 8.47% Morningstar Fund Small Growth 5.62% 15.93% 20.40% 11.15% 13.02% 7.57% % Rank in Morningstar Category (1% = Best) -- -- 17% 4% 9% 16% # of Funds in Morningstar Category -- -- 674 597 532 399 FUND INFORMATION Manager(s): Patrick Venanzi Trading Symbol: FCPGX Start Date: November 03, 2004 Size (in millions): $3,427.80 Morningstar Category: Fund Small Growth Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 11/03/2004. 2 This expense ratio is from the most recent prospectus and generally is based on amounts incurred during the most recent fiscal year. This fund has a short term trading fee 1.50% for shares held less than 90 days. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different returns. To learn more or to obtain the most recent month-end or other share-class performance, visit fidelity.com/performance, institutional.fidelity.com, or 401k.com. Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. For definitions and other important information, please see the Definitions and Important Information section of this Fund Review. Not FDIC Insured May Lose Value No Bank Guarantee
Performance Review For the quarter, the fund's Retail Class shares advanced 8.74%, outpacing the Russell 2000 Growth return of 6.22%. Versus the benchmark, successful stock picking was behind the fund's relative outperformance particularly choices within information technology's software & services segment. Individual contributors this quarter included two longtime and large fund holdings: Stamps.com (+31%) and 2U (+19%). Electronic postage services firm Stamps was the fund's largest individual contributor; shares rose about 31% the past three months, jumping the most in August after the company released its second-quarter financial results. Investors were impressed by the firm's better-than-expected earnings increase, which more than doubled on a year-over-year basis. Given the strong results, Stamps upped its sales and profits guidance for the remainder of 2017. We, too, were positive on Stamps.com's growth trajectory, so we increased the fund's position in the stock this quarter. 2U partners with leading nonprofit colleges and universities to offer online degree programs. The firm continued to benefit from new partnerships and offerings, such as an online businessanalytics certification from Harvard University. Elsewhere, an out-of-index stake in The Chemours Company was another big contributor. The stock continued to benefit from investors' hope that a deregulation-friendly administration would help mitigate an obstacle plaguing the firm: a class-action lawsuit over toxic pollutants it allegedly dumped into waterways. Also, Chemours reported better-than-expected second-quarter results, including a surprise jump in profit versus the prior-year period. On the flip side, avoiding index component and cancer-focused biotechnology firm Kite Pharma hurt relative performance the most; the stock returned about 73%. Shares of Kite surged in late August after large-cap biotech firm Gilead Sciences announced it would acquire Kite for a sizable premium. The deal was completed after the end of the quarter. Outlook and Positioning We view market, sector and factor timing as very difficult tasks, and thus we continue to focus on picking individual stocks while de-emphasizing choices based on sectors and staying fully invested. Specifically, we seek companies with strong competitive positions in growing markets that we believe can compound value regardless of the market environment. We assemble fund holdings stock by stock, sector by sector, using fundamental and quantitative assessment to compare current positions with the remaining 95% of universe names that the fund does not own. As of September 30, consumer staples and technology are the fund's largest sector overweightings. In consumer staples, we held a large overweighting in Central Garden & Pet, which owns a portfolio of brands in the lawn and garden supplies and the pet supplies industries. The stock performed very well this quarter, landing among our top relative contributors. Within tech, we established several new positions this quarter, including a stake in Quotient Technology (formerly known as Coupons.com), which provides digital promotions, media and shopper analytics. Although we think stock picking in the biotech, pharma & life sciences group can be quite rewarding, the fund's largest underweighting now is in health care. The fund holds a basket of highly curated biotechs. To manage risk in this industry, we keep our individual position sizes relatively small. CHARACTERISTICS Valuation Price/Earnings Trailing 52.8x 45.0x Price/Earnings (IBES 1- Forecast) 31.5x 29.4x Price/Book 4.6x 4.5x Price/Cash Flow 26.0x 20.1x Return on Equity (5- Trailing) 9.1% 9.7% Growth Sales/Share Growth 1- (Trailing) 11.6% 11.3% Earnings/Share Growth 1- (Trailing) 5.6% 8.7% Earnings/Share Growth 1- (IBES Forecast) Earnings/Share Growth 5- (Trailing) Size 32.3% 33.6% ed Average Market Cap ($ Billions) 3.7 2.4 ed Median Market Cap ($ Billions) 3.2 2.3 Median Market Cap ($ Billions) 2.7 1.0 2 For definitions and other important information, please see Definitions and Important Information section of this Fund Review.
MARKET-SEGMENT DIVERSIFICATION Market Segment Change From Prior Quarter Information Technology 25.73% 23.96% 1.77% -0.08% Health Care 21.52% 24.82% -3.30% 0.46% 19.42% 17.85% 1.57% 1.79% Consumer Discretionary 13.38% 13.75% -0.37% -1.51% Financials 6.20% 6.03% 0.17% -0.83% Consumer Staples 4.29% 2.50% 1.79% -0.30% Materials 3.95% 4.69% -0.74% -0.98% Real Estate 2.69% 3.38% -0.69% 0.81% Utilities 0.50% 0.70% -0.20% 0.26% Energy 0.01% 1.22% -1.21% -0.95% Telecommunication Services 0.00% 1.09% -1.09% -0.06% Other 0.00% 0.00% 0.00% 0.00% ASSET ALLOCATION Asset Class Change From Prior Quarter Domestic Equities 93.13% 98.58% -5.45% -1.27% International Equities 4.55% 1.42% 3.13% -0.13% Developed Markets 4.52% 1.05% 3.47% 0.02% Emerging Markets 0.03% 0.24% -0.21% -0.26% Tax-Advantaged Domiciles 0.00% 0.13% -0.13% 0.11% Bonds 0.00% 0.00% 0.00% 0.00% Cash & Net Other Assets 2.32% 0.00% 2.32% 1.40% Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number. 10 LARGEST HOLDINGS Holding Market Segment 2U, Inc. Information Technology Stamps.com, Inc. Grand Canyon Education, Inc. SiteOne Landscape Supply, Inc. The Chemours Co. LLC KBR, Inc. WABCO Holdings, Inc. Vail Resorts, Inc. BWX Technologies, Inc. Cedar Fair LP (depositary unit) 10 Largest Holdings as a % of Net Assets Information Technology Materials 18.03% Total Number of Holdings 169 The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings do not include money market investments. 3-YEAR RISK/RETURN STATISTICS Beta 0.79 1.00 Standard Deviation 12.36% 15.11% Sharpe Ratio 1.31 0.79 Tracking Error 4.53% -- Information Ratio 0.95 -- R-Squared 0.93 -- "Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation. 3 For definitions and other important information, please see Definitions and Important Information section of this Fund Review.
Definitions and Important Information Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, act as an impartial adviser, or to give advice in a fiduciary capacity. CHARACTERISTICS Earnings-Per-Share Growth measures the growth in reported earnings per share over the specified past time period. Median Market Cap identifies the median market capitalization of the portfolio or benchmark as determined by the underlying security market caps. Price-to-Book (P/B) Ratio is the ratio of a company's current share price to reported accumulated profits and capital. Price/Cash Flow is the ratio of a company's current share price to its trailing 12-months cash flow per share. Price-to-Earnings (P/E) Ratio (IBES 1- Forecast) is the ratio of a company's current share price to Wall Street analysts' estimates of earnings. Price-to-Earnings (P/E) Ratio Trailing is the ratio of a company's current share price to its trailing 12-months earnings per share. Return on Equity (ROE) 5- Trailing is the ratio of a company's last five years historical profitability to its shareholders' equity. Preferred stock is included as part of each company's net worth. Sales-Per-Share Growth measures the growth in reported sales over the specified past time period. ed Average Market Cap identifies the market capitalization of the average equity holding as determined by the dollars invested in the portfolio or benchmark. ed Median Market Cap identifies the market capitalization of the median equity holding as determined by the dollars invested in the portfolio or benchmark. RANKING INFORMATION 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the fund's current prospectus for the most up-to-date information concerning applicable loads, fees and expenses. % Rank in Morningstar Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1%. % Rank in Morningstar Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges. Multiple share classes of a fund have a common portfolio but impose different expense structures. RELATIVE WEIGHTS weights represents the % of fund assets in a particular market segment, asset class or credit quality relative to the benchmark. A positive number represents an overweight, and a negative number is an underweight. The fund's benchmark is listed immediately under the fund name in the Performance Summary. IMPORTANT FUND INFORMATION positioning data presented in this commentary is based on the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance. INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise noted. Russell 2000 Growth is a market-capitalization-weighted index designed to measure the performance of the small-cap growth segment of the U.S. equity market. It includes those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth rates. MARKET-SEGMENT WEIGHTS Market-segment weights illustrate examples of sectors or industries in which the fund may invest, and may not be representative of the fund's current or future investments. Should not be construed or used as a recommendation for any sector or industry. 4
3-YEAR RISK/RETURN STATISTICS Beta is a measure of the volatility of a fund relative to its benchmark index. A beta greater (less) than 1 is more (less) volatile than the index. Information Ratio measures a fund's active return (fund's average monthly return minus the benchmark's average monthly return) in relation to the volatility of its active returns. R-Squared measures how a fund's performance correlates with a benchmark index's performance and shows what portion of it can be explained by the performance of the overall market/index. R- Squared ranges from 0, meaning no correlation, to 1, meaning perfect correlation. An R-Squared value of less than 0.5 indicates that annualized alpha and beta are not reliable performance statistics. Sharpe Ratio is a measure of historical risk-adjusted performance. It is calculated by dividing the fund's excess returns (the fund's average annual return for the period minus the 3-month "risk free" return rate) and dividing it by the standard deviation of the fund's returns. The higher the ratio, the better the fund's return per unit of risk. The three month "risk free" rate used is the 90-day Treasury Bill rate. Standard Deviation is a statistical measurement of the dispersion of a fund's return over a specified time period. Fidelity calculates standard deviations by comparing a fund's monthly returns to its average monthly return over a 36-month period, and then annualizes the number. Investors may examine historical standard deviation in conjunction with historical returns to decide whether a fund's volatility would have been acceptable given the returns it would have produced. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation does not indicate how the fund actually performed, but merely indicates the volatility of its returns over time. Tracking Error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark, creating an unexpected profit or loss. Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges, and expenses. For this and other information, call or write Fidelity for a free prospectus or, if available, a summary prospectus. Read it carefully before you invest. Past performance is no guarantee of future results. Views expressed are through the end of the period stated and do not necessarily represent the views of Fidelity. Views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund. The securities mentioned are not necessarily holdings invested in by the portfolio manager(s) or FMR LLC. References to specific company securities should not be construed as recommendations or investment advice. Diversification does not ensure a profit or guarantee against a loss. S&P 500 is a registered service mark of Standard & Poor's Financial Services LLC. Other third-party marks appearing herein are the property of their respective owners. All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. Fidelity Brokerage Services LLC, Member NYSE, SIPC., 900 Salem Street, Smithfield, RI 02917. Fidelity Investments Institutional Services Company, Inc., 500 Salem Street, Smithfield, RI 02917. 2017 FMR LLC. All rights reserved. Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. 657739.17.0