QUARTERLY FUND REVIEW AS OF SEPTEMBER 30, 2017 Fidelity Low-Priced Stock Fund Investment Approach Fidelity Low-Priced Stock Fund implements an opportunistic approach, rooted in a strict valuation bias that focuses predominantly on small- and mid-cap companies trading at or below $35 per share or with an earnings yield at or above the median for the Russell 2000. Our investment process is based on the belief that many low-priced companies are mispriced and that there are opportunities in so-called 'non-glamour' stocks. We seek to buy higher-quality companies with stable growth prospects and that trade at a discount to our estimation of intrinsic (fair) value. We supplement these holdings with stakes in firms for which we believe near-term prospects appear challenged, but where we see a meaningful disparity between price and value. We look for opportunities both within and outside the fund's benchmark. In managing the fund, we invest with a long-term time horizon and global perspective, seeking to deliver attractive risk-adjusted returns by emphasizing companies we believe offer a degree of downside protection, assessed through rigorous analysis of each firm's income statement and balance sheet. PERFORMANCE SUMMARY Cumulative 3 Month YTD 1 Annualized 3 5 10 / LOF 1 Fidelity Low-Priced Stock Fund Gross Expense Ratio: 0.68% 2 5.03% 13.16% 16.91% 8.44% 12.81% 8.10% Russell 2000 5.67% 10.94% 20.74% 12.18% 13.79% 7.85% Morningstar Fund Mid-Cap Value 3.06% 7.46% 14.83% 7.90% 12.71% 6.85% % Rank in Morningstar Category (1% = Best) -- -- 31% 52% 60% 27% # of Funds in Morningstar Category -- -- 410 363 319 226 FUND INFORMATION Manager(s): Team Managed Trading Symbol: FLPSX Start Date: December 27, 1989 Size (in millions): $38,546.92 Morningstar Category: Fund Mid-Cap Value Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The securities of smaller, less well-known companies can be more volatile than those of larger companies. 1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 12/27/1989. 2 This expense ratio is from the most recent prospectus and generally is based on amounts incurred during the most recent fiscal year. 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 ending September 30, 2017, the fund's Retail Class shares rose 5.03%, slightly trailing the 5.67% return of the benchmark Russell 2000. September was a particularly difficult month for the fund. The Russell 2000 was up more than 6% on renewed optimism for fiscal stimulus, while the fund gained less than 3%. During the month, the market was led by certain factors, such a lower-quality and micro-cap stocks, which are generally not a focus of the fund and its investment approach. The fund's strategy is to invest in high-quality companies trading at a discount to intrinsic value. Meanwhile, our roughly 12% stake in cash also proved to be a headwind the past three months. Overall, stock selection contributed to the fund's relative result, adding 47 basis points (bps) of relative performance. Industry positioning detracted by 33 bps versus the benchmark. In terms of security selection, the fund's holdings in the retailing and food & staples retailing industries boosted relative performance. More specifically, non-index positions in U.K. apparel retailer Next (retail) and Japan-based drug store operator Cosmos Pharmaceutical (food & staples retailing) were among the fund's top relative contributors. Conversely, holdings in the software & services industry notably detracted, including a nonindex position in Oracle, as our holdings returned about -3%. Elsewhere, our position in tech hardware & equipment detracted. Here, we were hurt by non-index stakes in data-storage provider Seagate Technology and Taiwan-based original equipment manufacturer Hon Hai Precision Industry. Elsewhere, underweighting the real estate sector and the consumer services industry proved helpful, as each lagged the broader market. In particular, overweighting Watchers International (consumer services) was helpful, as the stock gained about 30% this quarter. In the real estate category, an out-of-index position in Tokyo-based Relo Group modestly aided fund performance. Our investment in the stock of the outsourcing housing provider gained roughly 18% this quarter. The fund maintained more than a third of its total holdings in foreign-based stocks, which contributed to the fund's overall performance. Positions in the United Kingdom, Europe, Japan and Canada all outperformed the all-domestic Russell index. Outlook and Positioning Philosophically, the portfolio management team continues to look for what it considers the best undervalued companies whose business models it can understand, are not likely to succumb to competition or obsolescence, and have honest and capable management. The fund's benchmark is limited to U.S.-based companies, but often we find more-attractive opportunities abroad. As a result, at period end the fund continued to maintain significant exposure to foreign-based stocks. The portfolio managers are being guided by what they consider valuable research work being done by our analysts in Japan, Canada, Australia, Ireland, London and other parts of Europe, and we have been able to leverage Fidelity's global research footprint to take advantage of these opportunities. Although the fund's cash position may have appeared high on an absolute basis, it remained roughly in line with its historical average because higher stock valuations have limited our "low priced" opportunity set. However, we are optimistic that the new investment policy change expanding the fund's universe, effective in November 2017, can lead to greater opportunity in undervalued small- and mid-cap stocks of high-quality companies with stable growth prospects that trade at a discount to our estimation of intrinsic (fair) value. At the end of September, the fund's positioning had not materially changed from the prior quarter. The largest sector weightings were consumer discretionary (23%), information technology (17%) and health care (12%). Among these, only the fund's positions in consumer discretionary represented a significantly higher allocation than the index, which held a roughly 12% stake. The fund also continued to be notably overweighted consumer staples. Conversely, the fund was underweighted financials, industrials, real estate, health care and utilities. CHARACTERISTICS Valuation Price/Earnings Trailing 16.1x 33.2x Price/Earnings (IBES 1- Forecast) 14.0x 24.0x Price/Book 2.0x 2.4x Price/Cash Flow 10.3x 14.8x Return on Equity (5- Trailing) 11.8% 7.3% Growth Sales/Share Growth 1- (Trailing) 3.6% 6.2% Earnings/Share Growth 1- (Trailing) 12.5% 1.4% Earnings/Share Growth 1- (IBES Forecast) 18.0% 26.5% Earnings/Share Growth 5- (Trailing) 8.2% 8.5% Size ed Average Market Cap ($ Billions) 26.2 2.2 ed Median Market Cap ($ Billions) 7.8 2.0 Median Market Cap ($ Billions) 0.8 0.8 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 Consumer Discretionary 22.90% 12.06% 10.84% 0.12% Information Technology 17.44% 16.71% 0.73% -0.43% Health Care 12.16% 15.71% -3.55% -0.83% Financials 10.38% 18.09% -7.71% -0.61% Consumer Staples 9.08% 2.60% 6.48% 0.12% Industrials 7.92% 14.99% -7.07% -0.55% Materials 3.34% 4.46% -1.12% 0.08% Energy 2.87% 3.71% -0.84% 0.01% Real Estate 0.92% 7.24% -6.32% 0.26% Utilities 0.59% 3.60% -3.01% 0.04% Telecommunication Services 0.00% 0.83% -0.83% 0.03% Other 0.00% 0.00% 0.00% 0.00% 10 LARGEST HOLDINGS Holding UnitedHealth Group, Inc. Ross Stores, Inc. Best Buy Co., Inc. Next PLC Metro, Inc. Class A (sub. vtg.) Seagate Technology LLC Unum Group Aetna, Inc. Hon Hai Precision Industry Co. Ltd. (Foxconn) Barratt Developments PLC 10 Largest Holdings as a % of Net Assets Market Segment Health Care Consumer Staples Information Technology Financials Health Care Information Technology 24.86% Total Number of Holdings 916 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. ASSET ALLOCATION Asset Class Change From Prior Quarter Domestic Equities 49.27% 98.15% -48.88% -2.77% International Equities 38.34% 1.85% 36.49% 1.02% Developed Markets 31.34% 1.16% 30.18% 1.53% Emerging Markets 7.00% 0.59% 6.41% -0.68% Tax-Advantaged Domiciles 0.00% 0.10% -0.10% 0.17% Bonds 0.01% 0.00% 0.01% 0.00% Cash & Net Other Assets 12.38% 0.00% 12.38% 1.75% 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. 3-YEAR RISK/RETURN STATISTICS Beta 0.53 1.00 Standard Deviation 8.84% 14.48% Sharpe Ratio 0.92 0.82 Tracking Error 8.16% -- Information Ratio -0.46 -- R-Squared 0.75 -- "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. used as a recommendation for any sector or industry. 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. Effective 4/21/17, Sam Chamovitz was added as a co-portfolio manger while James Harmon transitioned off the fund. 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 is a market-capitalization-weighted index designed to measure the performance of the small-cap segment of the U.S. equity market. It includes approximately 2,000 of the smallest securities in the Russell 3000. 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 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. 646708.20.1