Last week I covered five of the top blue chip stocks in terms of analyst earnings revisions for first-quarter earnings. If you had a chance to read it, I hope you’ve considered what I said about analyst earnings revisions. When push comes to shove, I consider upward revisions to be a powerful indicator of earnings surprises.
Hot Insurance Stocks To Own Right Now: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Matt Blecker]
Although still a long way from IBM (IBM) and HP (HPQ), acquisitions of Perot Systems in November of 2009 and Secure Works in February of 2011 has enabled Dell to become a broader IT services and solutions provider. The IT services market is a large, highly competitive market, nearly $850 billion in 2011 worldwide according to Gartner, and is also less concentrated with lower barriers to entry. IBM�� top market share (approximately 7% in 2010) is a much lower share than the top share in other areas like servers and storage systems. Dell�� growth of service revenue shows they have executed relatively well so far, is helping to forge stronger IT relationships, and also partially responsible for the improvement in operating margins over the past couple of years.
Best Blue Chip Companies To Buy For 2014: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By MONEYMORNING.COM]
Give me Apple (Nasdaq: AAPL) stock at $70, Tesla Motors Inc. (NASDAQ: TSLA) stock at $200, and Alibaba Group Holding Ltd. (NYSE: BABA) at $80.
- [By James E. Brumley]
If headlines are any indication, then Sirius XM Holdings Inc. (NASDAQ:SIRI) is one again supposed to be one of the few "must have" investments heading into 2014. If the chart of SIRI is any indication though (and it is), then the SIRI party is over. Since - as they say - money talks, the smart move here may be to listen to what the chart of the satellite radio service is telling you.... that Pandora Media Inc. (NYSE:P), iTunes from Apple Inc. (NASDAQ:AAPL), Spotify, and perhaps a handful of other alternative audio entertainment sources are finally getting enough evident traction that Sirius shareholders are spooked. The evidence that the likes of Apple and Pandora are actually stealing business SIRI would normally win is shaky, at best, mind you. Indeed, the subscriber growth trend for Sirius XM remains impressive, and should realistically continue to grow at a steady clip for years. The perception of SIRI relative to P or AAPL, though, is damaged, and changing investors' perception is a heck of a lot tougher than winning new customers is.
- [By Andr茅s Cardenal]
Apple (NASDAQ: AAPL ) and Coca-Cola (NYSE: KO ) are two very different companies operating in their own independent industries. However, the two companies have some important similarities when seen from an investment perspective: They both offer superior quality for a bargain valuation.
- [By Evan Niu, CFA]
Investors have been coming to terms with the notion that Apple (NASDAQ: AAPL ) may have a slow summer. It's not a busy shopping time seasonally, and everyone is expecting new product launches this fall.
Best Blue Chip Companies To Buy For 2014: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Chuck Saletta]
Which way did they go?
Perhaps the biggest disappointment of the week came from fast-food titan McDonald's (NYSE: MCD ) , which announced flat earnings and negative same-store sales, while also warning on sales for April. The company blamed penny-pinching consumers and intense competition. Perhaps even more ominously, McDonald's CFO's comments could be interpreted to suggest that the company might be willing to enter a price war in order to gain share. - [By Jeremy Bowman]
Some minimum-wage workers at McDonald's (NYSE: MCD ) joined with fellow fast-food employees and walked off the job today, demanding a $15-an-hour wage in a weeklong protest. The minimum-wage issue appears to be gaining traction after the D.C. Council recently passed a law designed to make Wal-Mart pay its future workers there a minimum of $12.50 an hour, and President Obama's recent statement that the widening income gap was damaging the country. McDonald's has also been the target of much derision and mockery since a sample budget for employees, which among other things implies that a worker needs two jobs, found its way to the media. Shares of Mickey D's were unaffected by the strike, falling 0.2%, but the issue will continue to circulate and could become a greater concern.
Best Blue Chip Companies To Buy For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Selena Maranjian]
Other large-cap stocks didn't do quite so well over the last year but could see their fortunes change in years to come. Philip Morris International (NYSE: PM ) , for example, gained 5% and yields 4.1%. With domestic tobacco companies challenged by tightening regulations, rising taxes, and a shrinking smoking base, many have assumed that Philip Morris is the best bet in tobacco. But in the third quarter, it posted the weakest results, with volume taking a sizable drop and a strong dollar reducing its earnings. Bulls like its innovation and share buybacks.
- [By Shauna O'Brien]
On Wednesday, Philip Morris International Inc. (PM) announced that its board has approved a 10.6% increase to its quarterly dividend.
PM has increased its dividend from 85 cents to 94 cents per share, or $3.76 annually.
The dividend will be paid on October 11 to shareholders of record on September 26. The stock will go ex-dividend on September 24.
Philip Morris shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.
- [By Tim Melvin]
Some of the traditionally defensive stocks like Phillip Morris International (PM) and Merck (MRK) also fail our test for operating conditions and financial changes. Yield chasers have also pushed the value of their shares to unsustainable levels, and are unlikely to see much more than mid- to low-single-digit profit growth for several years.
Best Blue Chip Companies To Buy For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Dan Caplinger]
Energy giants ExxonMobil (NYSE: XOM ) and Chevron (NYSE: CVX ) have both declined about half a percent after OPEC announced that it would keep its cap on oil output at its current level of 30 million barrels per day. Yet arguably more important is the cartel's forecasts of a continued fall in demand for OPEC crude, largely owing to the big rise in North American production stemming from unconventional sources like shale plays and Canada's oil sands. For now, at least, OPEC's influence on the overall oil market has diminished significantly, and that's at least some relief for consumers who are already paying more at the pump than they'd like.
- [By Arjun Sreekumar]
Brown's assessment is supported by Shell and other oil majors' experiences with shale drilling outside of North America. For instance, ExxonMobil (NYSE: XOM ) retrenched from its operations in Poland last year after initial tests failed to produce commercial quantities of natural gas. Chevron (NYSE: CVX ) echoed similar concerns, offering a bleak outlook for shale production potential in Europe. �
- [By Matt Thalman]
Exxon's price-to-earnings ratio, which is what Brian used to determine the cheapest company, was 9.3, while the next lowest P/E ratio for any other Dow Jones Industrial Average (DJINDICES: ^DJI ) component was 9.5, for Chevron (NYSE: CVX ) and JPMorgan Chase. There are probably a number of reasons the stock is trading at such a deep discount right now, such as a higher future P/E of 11.11, possible problems relating to recent oil spills, and, most importantly, the price of oil. While the short-term oil-spill problems shouldn't change a long-term investor's thesis, it will weigh on the minds of short-sighted traders. When it comes to the price of oil and its volatility, anyone investing in any oil company needs to fully understand that profits and stock prices are likely to fluctuate with the changes to the price of the commodity.
No comments:
Post a Comment