QUARTERLY FUND REVIEW AS OF SEPTEMBER 30, 2018 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: 0.62% 2 2.32% 3.22% 10.07% 11.25% 9.36% 11.87% Russell 2000 3.58% 11.51% 15.24% 17.12% 11.07% 11.11% Morningstar Fund Mid-Cap Value 3.05% 3.27% 8.93% 12.59% 9.33% 10.41% % Rank in Morningstar Category (1% = Best) -- -- 41% 72% 51% 17% # of Funds in Morningstar Category -- -- 422 373 315 228 FUND INFORMATION Manager(s): Team Managed Trading Symbol: FLPSX Start Date: December 27, 1989 Size (in millions): $35,839.46 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. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio. 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 gained 2.32%, trailing the 3.58% return of the benchmark Russell 2000. The fund's underperformance of the small-cap-oriented benchmark was primarily due to stock selection, as the undervalued, smaller-cap stocks of companies with stable growth prospects were largely out of favor the past three months. The third quarter was a continuation of what we have seen in 2018 where investors generally preferred expensive growth stocks. Within the Russell 2000, growth stocks returned about 6%, compared with roughly 2% for value. Historically, it's been fairly common for the fund to lag its benchmark in a strong-performing stock market and hold up better during a downturn. With a bull market that is now one of the longest-running in history, our portfolio management team remains confident our approach is sound. It's always disappointing to underperform the benchmark in any period, but we try to maintain a long-term view of the companies in the fund, and re-evaluate them on a recurring basis to ensure we remain confident in our assessment and not take on unnecessary risk in what, to us, feels like a speculative market to reach for returns. Versus the Russell benchmark, our picks in information technology, industrials and consumer staples detracted, as did positioning in the newly reconstituted communication services sector. The fund's investments in tech lagged those in the benchmark by 7 percentage points this quarter. Within the sector, the biggest detractor was a sizable non-benchmark position in hard disk-drive and storage manufacturer Seagate Technology (-15%), which reflected some easing of the favorable supply-demand profile for the company's commoditized products. Our view has not changed, and Seagate remained one of the fund's largest holdings. It's been a contributor to the fund over the trailing one-year period. In consumer staples, our sizable non-benchmark stake in Canadian supermarket retailer Metro detracted. The company reported weaker-than-expected earnings for the second quarter of 2018, but we maintained the fund's positioning here as well. In industrials, the fund's non-index position in Netherlands-based Aalberts Industries, a provider of industrial manufacturing products, returned -11%. Turning to the positive, good stock choices in financials and energy helped. The largest relative contributor was a sizable, non-index stake in California-based off-price retailer Ross Stores. Shares of Ross gained 17%, as the company continued to generate betterthan-expected quarterly earnings. Elsewhere, the fund's largest holding, health care provider UnitedHealth Group, which is not in the index, returned 9% this quarter. Investors rewarded the company for another quarter of strong earnings. Outlook and Positioning The stocks that were largely in favor across the broader equity market and within the Russell 2000 the past three months, and for much of the past year, were those with elevated valuations, aggressive-growth potential, and/or less-definitive earnings outlooks. These types of stocks are not a focus of our investment approach. We try to maintain a long-term perspective on the value of the companies held in the fund. It can be hard to maintain that focus when news or company-related events pull you in a different direction, if only temporarily. We try to stick to undervalued businesses that are easy to understand and in which we can forecast profits years out with some degree of accuracy. This may mean that during periods, such as the past quarter, when the market is focused on high-priced companies with exciting possibilities, the fund may lag because we avoid stocks with potential binary "could be great or could be terrible" outcomes. We expect to continue focusing on management teams that are skilled, honest and executing well. The fund's top holdings are companies with executives we believe in. Accurately forecasting the future value of a company largely depends on the decisions corporate managers are making years from now issues that may not even exist now. If we're invested with people making good business decisions today, it gives us some confidence that these people will make good decisions in the future. We are also looking for companies offering products and services that are not likely to be influenced by competition. In addition, we try hard not to overpay for the stocks of companies with these characteristics. Their businesses may be evolving, but not so fast that we can't understand them, and they are not in danger of immediate obsolescence. Because we continue to find new investment opportunities, the fund's cash position modestly declined to below 7% of the fund's assets as of September 30, from 8% at the start of the quarter. There were no material changes to the fund's sector positioning the past three months. CHARACTERISTICS Valuation Price/Earnings Trailing 14.9x 30.8x Price/Earnings (IBES 1- Forecast) 13.0x 21.6x Price/Book 1.9x 2.5x Price/Cash Flow 9.8x 15.3x Return on Equity (5- Trailing) 11.9% 7.4% Growth Sales/Share Growth 1- (Trailing) 10.1% 9.2% Earnings/Share Growth 1- (Trailing) 18.4% 21.3% Earnings/Share Growth 1- (IBES Forecast) 20.4% 29.0% Earnings/Share Growth 5- (Trailing) 7.7% 9.4% Size ed Average Market Cap ($ Billions) 37.8 2.4 ed Median Market Cap ($ Billions) 9.3 2.2 Median Market Cap ($ Billions) 1.0 0.9 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 21.06% 12.25% 8.81% -0.93% Information Technology 15.51% 13.93% 1.58% -0.79% 14.96% 16.45% -1.49% 0.02% Financials 11.40% 17.44% -6.04% 1.08% Consumer Staples 8.29% 2.65% 5.64% -0.54% Industrials 6.91% 15.00% -8.09% -0.36% Energy 5.94% 4.82% 1.12% 1.30% Materials 3.68% 4.21% -0.53% 0.43% Communication Services 3.09% 3.26% -0.17% 0.49% Utilities 1.89% 3.10% -1.21% 0.31% Real Estate 0.60% 6.88% -6.28% 0.29% Other 0.00% 0.00% 0.00% 0.00% ASSET ALLOCATION Asset Class Change From Prior Quarter Domestic Equities 59.73% 99.25% -39.52% 2.03% International Equities 33.61% 0.75% 32.86% -0.74% Developed Markets 26.71% 0.45% 26.26% -0.53% Emerging Markets 6.90% 0.17% 6.73% -0.20% Tax-Advantaged Domiciles 0.00% 0.13% -0.13% -0.01% Bonds 0.01% 0.00% 0.01% 0.00% Cash & Net Other Assets 6.65% 0.00% 6.65% -1.29% 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 UnitedHealth Group, Inc. Ross Stores, Inc. Best Buy Co., Inc. Aetna, Inc. Next PLC Seagate Technology LLC Metro, Inc. Class A (sub. vtg.) ANSYS, Inc. Amgen, Inc. Unum Group 10 Largest Holdings as a % of Net Assets Total Number of Holdings 893 Market Segment Information Technology Consumer Staples Information Technology Financials 27.49% 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 0.49 1.00 Standard Deviation 8.13% 13.11% Sharpe Ratio 1.28 1.24 Tracking Error 8.27% -- Information Ratio -0.71 -- R-Squared 0.63 -- "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. 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. 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 used as a recommendation for any sector or industry. RANKING INFORMATION 2018 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 topperforming 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. Effective 3/31/18, Katherine Buck was removed as co-portfolio manager of the fund. Effective 6/11/18 Justin Bennett was removed as co-portfolio manager of the fund. As of September 28, 2018, S&P and MSCI made changes to the Global Industry Classification Standard (GICS) classification framework. The Telecommunication Services sector was broadened and renamed Communication Services to include additional companies previously classified in the Information Technology and sectors, and the Internet Software & Services industry/sub-industry was eliminated. 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. 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. 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. 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. 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. 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. 2018 FMR LLC. All rights reserved. Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. 646708.24.0 Diversification does not ensure a profit or guarantee against a loss.