Check Out These Blue-Chip Stocks In The Stock Market Today
The tech sell-off, especially among smaller cap growth stocks, is rippling through the stock market. And if you’re looking for bargains to carry into the new year with you, there are certainly some attractive options to consider now. If you’re wondering where to invest your money today, why not take a look at these blue-chip stocks.
What are some of the traits that blue-chip stocks typically possess? The best ones consistently grow their revenue and earnings per share, and have strong balance sheets. Put simply, you want to be investing in companies that are consistently growing, no matter what’s going on with the broader market. But that doesn’t mean these companies are foolproof. They too, will be subject to market forces and will rise and fall along the broader market movements. Considering many of them have been under pressure in recent months, would you consider putting up a list of top blue-chip stocks to buy in the stock market today?
Top Blue-Chip Stocks To Watch Right Now
- FedEx Corporation (NYSE: FDX)
- AT&T Inc. (NYSE: T)
- Exxon Mobil Corp. (NYSE: XOM)
- MercadoLibre Inc. (NASDAQ: MELI)
- Clorox Co. (NYSE: CLX)
FedEx
Package delivery kingpin FedEx surprised investors with its stronger-than-expected earnings on Thursday. For its second fiscal quarter, the company reported an earnings per share of $4.83 on revenue of $23.5 billion for the quarter. Despite the impressive quarter, labor inflation is still an issue, but the company appears to be handling it well. Recall in September, the higher labor inflation and supply chain disruptions led the company to cut full fiscal year 2022 guidance. Thankfully, higher revenue per shipment helped to offset these costs.
Notably, a key highlight of the company’s earnings call would be the update to its fiscal 2022 profit outlook. Thanks to the current momentum in its business, FedEx is reinstating its initial estimates after lowering them in September. For the fiscal year, the company is now expecting an annual earnings per share between $20.50 to $21.50. At the same time, FedEx also announced a $5 billion share repurchase program as well. It could suggest that management believes the stock is undervalued. With FedEx seemingly kicking into high gear across the board, would FDX stock make your list of blue-chip stocks to buy now?
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AT&T
Many investors have long left AT&T for good. It has been a painful year for AT&T stock investors, to say the least. But that could soon change. Yesterday, Simon Flannery, an analyst at Morgan Stanley, placed an ‘Overweight’ rating on T stock. Flannery believes that the company will become a more streamlined company focused on its core communications operations after its WarnerMedia entertainment division completes the merger with Discovery (NASDAQ: DISCA). In addition to that, the analyst also argued that the company is poised to benefit greatly from the rising demand of 5G network services.
What’s more, AT&T CEO John Stankey provided an update to shareholders last week. He characterized current wireless industry demand trends as healthy, saying that any seasonal uptick in competition remains broadly in line with historical trends. Stankey is also confident in the sustainability of AT&T’s wireless momentum. Furthermore, the company’s deployment plans are on track. In fact, in the coming years, investors can expect multiple opportunities from the country’s largest fiber network, including improved consumer and business penetration. Given this exciting piece of news, is T stock worth investing in right now?
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ExxonMobil
Another blue chip stock to consider is oil and natural gas giant ExxonMobil. By and large, ExxonMobil is an industry juggernaut thanks to its massive refinery operations. The likes of which cater to the increasing energy needs of the world today. With ExxonMobil’s current presence in the market, Exxon should keep pumping profits from its oil wells for decades. Not to mention it also has a large natural gas business, which allows it to diversify from its oil demand.
No doubt, the biggest driver of profitability for major oil companies is the oil price itself. As with many commodities, oil prices tend to move up and down over the course of the year due to seasonality. With the potential for a colder winter, it sets the stage for higher oil prices in the year to come. To top it all off, the company’s current dividend yield of 5.7% could be another reason why investors love this stock so much. Considering all this, would you include XOM stock on your watchlist going into 2022?
MercadoLibre
MercadoLibre operates one of the largest ecommerce platforms in Latin America. The company’s platform is accessible to consumers across 18 Latin American countries. And it is actively taking measures to grow in these markets. For instance, it announced the acquisition of Redelcom earlier this week. Redelcom is a Chilean payment services provider of high-tech point-of-sale (POS) terminals. This acquisition would synergize well with MercadoLibre’s POS division, MercadoPago. With Redelcom, MercadoLibre seems to be taking aim at smaller upcoming names in the Latin American retail scene.
Moreover, the company also saw green across the board in its latest quarterly earnings report posted last month. In it, MercadoLibre posted a total revenue of $1.86 billion, marking a solid year-over-year increase of 66%. Over the same period, it also reported gains of over 530% in both its net income and earnings per share. Additionally, its unique active users grew to 78.7 million in the latest quarter. After sliding around 40% from its all-time high, would MELI stock be one of the top undervalued stocks to buy?
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Clorox
Arguably one one of the most contrarian picks here is Clorox. For the uninitiated, it is a global manufacturer and marketer of consumer and professional products. In brief, the company’s flagship offerings include its bleach and cleaning products. If you’re worried about inflation, it’s comforting to know that Clorox has the pricing power to mitigate those effects. Should Omicron pose a bigger threat, demand for cleaning products could jump again.
After an unprecedented growth in 2020, it is looking at extremely difficult year-over-year comparisons. But if we look at it on a 2-year basis, the growth rate remains respectable. With much of the downside appearing to be baked in, investors may be in a position to make a decent return. In addition, the company has a history of delivering consistent double-digit returns on capital and profit margins. Safe to say, consumers have and continue to turn to Clorox amid the current pandemic. Should investors be doing the same with CLX stock?
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