The stock market is a platform where investors buy and sell shares of publicly traded companies. It offers opportunities for individuals and institutions to invest in various sectors of the economy. Blue chip stocks represent shares of large, well-established companies with a history of stable earnings. These companies are often household names and industry leaders. Blue chip stocks are notable for their reliability and financial stability.
Investing in blue chip stocks can offer several advantages. They typically provide steady dividends, appealing to income-focused investors. Blue chips often have strong balance sheets and can weather economic downturns better than smaller companies. These stocks may offer less volatility compared to the broader market. However, blue chip stocks also have potential drawbacks. They may offer lower growth potential compared to emerging companies. Blue chips can be expensive, with high share prices that may be challenging for some investors.
When considering blue chip stocks, it’s important to evaluate the company’s long-term performance and market position. Look at factors like dividend history, earnings growth, and competitive advantages. Consider the industry outlook and potential disruptive forces. Be aware that even established companies can face challenges in rapidly changing markets. Considering this, here are two blue chip stocks to watch in the stock market this week.
Blue Chip Stocks To Buy [Or Sell] Today
- Eli Lilly & Company (NYSE: LLY)
- Costco Wholesale Corporation (NASDAQ: COST)
Eli Lilly & Co. (LLY Stock)
Starting off, Eli Lilly & Company (LLY) is a global pharmaceutical corporation headquartered in Indianapolis, Indiana. They research, develop, manufacture, and market a wide range of pharmaceutical products. Eli Lilly focuses on areas such as diabetes, oncology, immunology, and neuroscience.
Today, Eli Lilly & Co. announced that its Alzheimer’s treatment, Kisunla (donanemab-azbt), has been approved in Japan. This approval is for adults with early symptomatic Alzheimer’s disease, including those with mild cognitive impairment and mild dementia. Japan is now the second major market to approve Kisunla, following its U.S. approval in July 2024. The drug targets amyloid plaques in the brain, which are associated with Alzheimer’s progression. Lilly emphasized the drug’s potential to significantly slow cognitive and functional decline based on their TRAILBLAZER-ALZ 2 study.
Year-to-date, shares of Eli Lilly & Co. stock have gained by 54.95% so far. Meanwhile, on Tuesday morning, LLY stock opened slightly red by 0.24%, currently trading at $917.07 a share.
[Read More] 2 Monthly Dividend Stocks To Watch In September 2024
Costco Wholesale Corp. (COST Stock)
Following that, Costco Wholesale Corporation (COST) is a multinational corporation operating a chain of membership-only big-box retail stores. They sell a wide variety of merchandise, including groceries, electronics, home goods, and clothing. Costco is known for its bulk sales, competitive pricing, and unique business model of selling memberships.
Earlier this month, Costco Wholesale Corporation announced its sales results for August 2024 and the fiscal year ending September 1, 2024. The company reported net sales of $19.83 billion for August, a 7.1% increase from the previous year. For the full fiscal year, Costco’s net sales reached $249.6 billion, marking a 5.0% increase from fiscal year 2023. The company saw positive comparable sales growth across all regions, with notable strength in e-commerce.
In 2024 so far, shares of COST stock have increased by 39.37% YTD. With that, on Tuesday morning, Costco stock opened the trading day down 1.14%, currently trading at $906.66 a share.
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