�While its two peer indexes finished the day essentially unchanged, the Dow Jones Industrial Average (DJINDICES: ^DJI ) dropped 0.3% as AT&T (NYSE: T ) Procter & Gamble (NYSE: PG ) sank the blue chips following earning releases. Durable-goods orders for March were down significantly, falling 5.7% against an expected drop of 3.1%, and February's increase was also revised downward. It was the worst drop orders in seven months for products like cars, appliances, and furniture, and the category fell 1.4% excluding the more volatile transportation segments. Stocks were up Europe and Asia earlier, but concern about earnings and the durable-goods report seems to have dampened any carryover effect.
After reporting earnings last night, AT&T shares finished down 5% and fell another 1.5% after hours. Investors were disappointed that Ma Bell reported losing a net total of 69,000 cell phone subscribers. The country's No. 2 telecom made strong gains on tablet data plans, but that wasn't even to avert concerns that its bigger rival, Verizon, was leaving it in the dust. EPS were in line with estimates at $0.64, but revenue fell by 1% in the quarter, a bigger drop than expected.
Top Blue Chip Stocks To Invest In 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 Quickel]
McDonald's, is just such a solid stock with the combination of growth, safety and income. We believe that MCD should be headed to $110 this year, which will not be as strong as some of our other targets. Yet, we also will be picking up a solid 2.8% yield that is attractive. Further, MCD has done a great job dealing with currency issues and has not seen a slowdown despite issues in Europe and China. We believe that MCD will continue to offer growth and value this year, and we like it to offset value and growth plays with income investing.
Entry: $99.58
Allocation: $2500
Target: $105, $110
- [By JON C. OGG]
McDonald’s Corporation (NYSE: MCD) is at $85.08 and analysts have a consensus price target objective of $97.68. It carries a 2.9% dividend yield and the stock is down 5% from its 52-week high. McDonald’s trades at close to 6-times book value, but its return on equity is 37%. S&P carries an “A” local long-term rating on the Golden Arches. In the “you gotta eat somewhere” theory, McDonald’s seems to keep winning over and over and its shares and same-store sales keep rising handily.
- [By Martin]
The company is one of the world’s most recognized brands. The Golden Arches has locations all over the world. McDonald’s has managed to continually reinvent itself and its menu, and delivered strong shareholder returns in the process. However, it is lagging behind Yum! Brands (NYSE:YUM) in China, which is a key market for growth. While the 10-year dividend growth rate is at 26%, I expect distribution growth over the next decade to average 10%.
- [By Jeff Reeves]
McDonald’s (NYSE:MCD) isn’t quite as dramatic as Apple when it comes to stock performance. The company has “only” doubled since 2007 and “only” tripled since 2005 — compared with 330% gains since 2007 and 900% gains since 2005 for Apple.
But you have to admit, those gains still are incredibly impressive — especially for a mammoth blue chip like McDonald’s that is dominant worldwide.
Also worth consideration is the fact that, since 2007, McDonald’s has paid dividends totaling $9.26 per share. Since McDonald’s stock was trading around $45 four years ago, that means on top of doubling your money via the share appreciation, you would have gotten back about 20% of your initial investment via dividends alone. Or if you reinvested those funds, you really could have supercharged your returns even more.
Looking forward, McDonald’s shows no signs of slowing down. It has surpassed analysts’ expectations in?four of its past five earnings reports, most recently with second-quarter numbers boasting a 15% increase in profits. While its revenue has risen at a modest 3.6% annual rate during the past five years, net income has surged at a 14.6% annual rate — proving MCD can maintain margins and grow profits even if sales don’t soar.
McDonald’s, like Apple, knows how to deliver small-cap gains despite its blue-chip size. That makes this pick a keeper.
Top Blue Chip Stocks To Invest In 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 Scott Rothbort]
Apple(AAPL), which I included on my previous list of low-PEG stocks, remains one of the cheapest stocks around. The stock has still managed to increase in value over 16% this year, despite falling 12% since reaching an all-time high in October.
The iPhone 4S is a huge success. In 2012, the iPhone 5 and iPad 3 are likely to get introduced. The company's computers continue to grab market share away from Windows-based systems. The December quarter is expected to be the company's best ever. Earnings are expected to grow by 25% in 2011 and 12% in 2012. Yet the stock trades at just under 10 times 2012 earnings.
Apple's raw beta is 0.77
Apple shows up on recent lists of 5 Gadget Stocks for the Holidays and 9 Top Goldman Sachs Stocks for 2012.
- [By Smith]
Temporarily becoming the most valuable company in the world last week, Apple has not been hurt very much by the recent bear market. In fact, for a great read about Apple’s story, consider taking a look at this article. With household names like iPad and iPhone, we all know that Apple is valuable … but the question is how valuable?Answering a question like that isn’t easy, but we believe the answer is up – way up. In fact, when compared to Google (GOOG)’s valuation metrics, this isn’t even that unreasonable. Apple’s price to earnings, price/earnings to growth, and price to sales ratios are 14.91, 0.61, and 3.45 respectively. Google’s numbers in these same categories are 20.34, 0.84, and 5.45 – all much higher. While competitors like Hewlett-Packard (HPQ) and Research in Motion (RIMM) may be a bargain for those hunting sub-8 price to earnings ratios, AAPL is still a good place to be. The most recent news affecting Apple has been Steve Jobs’s crazy new plans for company headquarters, but needless to say this will not have a huge impact on AAPL stock price. What will though is whether the company can keep up its knack for fresh technology that consumers love. While some may call this blind faith, we see it as an investment opportunity.The best time to buy AAPL stock is before their next biggest thing is announced – and that time is right now.
- [By Stephen Quickel]
Can Apple Inc. (AAPL) return to the $700 level? Whether its does or not, I suspect that the stock will be one of the outstanding comeback stories during the year ahead.
Indeed, even if it rebounds to $600 or so, that's a 20% gain. Most investors would settle for that. And chances are it will do much better over time, given Apple's knack for coming up with new products.
Short sellers have cleaned up since they began bum-rapping Apple in late 2012. Three observations are appropriate:- The short positions, while rising rapidly early in the fall, never amounted to more than a few percent of the outstanding shares at their peak.
- The stock was probably overdue for correction, having zoomed 9-fold since March 2009.
- The consensus of 50-plus Wall Street analysts covering AAPL still calls for 20%-plus a year earnings growth going forward, with a target price of $762.
Apple, in case you hadn't noticed, is selling iPads and iPhones at record levels while its stock has been under attack, in just about every corner of the world.
- [By Curtis]
Even though Apple's stock has now reached the $420 price range (for just one share!), many analysts believe that AAPL is one of the most undervalued large-cap stocks.
Despite the loss of Steve Jobs last year, Apple has continued to gain value, and the trend is expected to continue through 2012 with the hotly anticipated iPad 3 and iPhone 5 releases. In fact, AAPL is predicted to hit $510 per share in the next year.
Best Communications Equipment Stocks To Invest In Right Now: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Jeff Reeves]
Despite a very rough 2011 so far, payment processor Visa (NYSE:V) is right there beside Apple with gains of nearly 30% since the first of the year. Visa stock continues to set 52-week highs and is within striking distance of new all-time highs above $97.
Visa doesn’t have quite the track record of many blue chips, having only gone public in 2008. However, there are some big reasons to expect that the recent growth is not just a flash in the pan.
For starters, the demographic trends are hard to ignore. The percentage of cashless transactions continues to rise. Despite rapid growth from fees for payment processing, 40% of all transactions in the U.S. still are done with cash or paper checks. That’s to say nothing of rapid growth of debit and credit card business in emerging markets. Visa’s logo is everywhere and will only be accepted in more places as the months go by.
And don’t forget, Visa is not a financial stock. Service fees account for more than one-third of revenue — meaning the stock is little more than a toll-taker on the road between a merchant and a customer’s checking account. It is not exposed to bad debt the way financial stocks like Bank of America (NYSE:BAC) and others are.
Visa has seen year-over-year earnings growth every single quarter since going public, and it should keep up that growth. Additionally, revenue was up 17% from fiscal 2009 to fiscal 2010 and is forecast to jump another 12% in fiscal 2011.
There is big growth to be had at Visa. It might not be Apple, but its strong growth potential and dominant brand make it a go-to stock for large-cap investors.
Top Blue Chip Stocks To Invest In 2014: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By ChuckCarlson]
Colgate-Palmolive Company (CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company has raised distributions for 48 years in a row. The 10 year annual dividend growth rate is 12.40%/year. The last dividend increase was 9.40% to 58 cents/share. Analysts are expecting that Colgate Palmolive will earn $5.52/share in 2012. I expect that the quarterly dividend will be raised to 64 cents/share in 2012. Yield: 2.60%
Top Blue Chip Stocks To Invest In 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 Louis Navellier]
Philip Morris International (NYSE:PM) is involved with the manufacture and sale of cigarettes and other tobacco products in over 180 countries across the globe. Year to date, PM stock is up 16%, compared to a loss of nearly 2% for the Dow Jones.
- [By MelvinPasternak]
Philip Morris International Inc. (PM), through its subsidiaries, manufactures and sells cigarettes and other tobacco products. The company has raised distributions since the spin-off from Altria Group in 2008. The last dividend increase was 20.30% to 77 cents/share. Analysts are expecting that Philip Morris International will earn $5.22/share in 2012. I expect that the quarterly distribution will reach 85 cents/share in 2012. Yield: 3.90%
Top Blue Chip Stocks To Invest In 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 Louis Navellier]
Chevron (NYSE:CVX) provides support to its subsidiaries in the following fields: petroleum operations, chemicals operations, mining operations, power generation and energy services. While many stocks on the NYSE have underperformed in 2011, Chevron stock is up 8% year to date.
- [By Hawkinvest]
Chevron Corporation (CVX) is a leading integrated energy company with exposure to oil, natural gas, refining, etc. This could be one of the most undervalued stocks in the market. Chevron pays a dividend that beats many other stock and bond yields, plus it has a below market price to earnings ratio of about 8 times earnings. The average stock in the S&P 500 Index currently trades for over 12 times earnings. If oil prices continue to rise, the already healthy profit estimates for Chevron might be too low. With oil prices showing strength this early in the season, Chevron could be poised to beat earnings in the coming months. However, the stock is trading at the upper end of the recent trading range. Recently, it has been possible to buy this stock at about $102 per share, so waiting for dips could pay off.
Here are some key points for CVX:
Current share price: $104.25
The 52 week range is $85.63 to $110.01
Earnings estimates for 2012: $12.66 per share
Earnings estimates for 2013: $13.20 per share
Annual dividend: $3.42 per share which yields 3.1%
- [By Chuck Carlson]
Chevron provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in petroleum operations, chemicals operations, mining operations, power generation and energy services. Cramer holds 500 shares of CVX stocks. CVX has a dividend yield of 3.21% and returned 10.91% since the beginning of this year. It has a market cap of $195.53B and a P/E ratio of 8.52. Phill Gross and Robert Atchinson invested over $300 million in CVX.
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