Our goal is to help investors grow their capital and income base from which to generate cash for their current and future needs, advises Kelley Wright, blue chip value investor and editor of IQ Trends.
To that end, we believe that shares of high-quality stocks purchased at an historically repetitive area of low-price to high-yield, offers the greater potential for downside protection and upside appreciation.
The Timely Ten is not just another best of, right now list. Rather, it is our reasoned expectation—based on our methodology and experience, that these ten currently Undervalued stocks offer the greatest real total-return potential over the next five years.
Do we believe that all ten will appreciate simultaneously or immediately? Of course not.
Our four-plus decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for both growth of capital and income.
Top 10 Blue Chip Stocks To Buy 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 Ben Levisohn]
The Dow’s comeback–if erasing a 0.4% drop can be called a comeback–was especially impressive considering that the four highest-priced stocks, and the ones with the biggest weights in the index, finished in the red. Visa (V) fell 0.6% to $220.55–perhaps a side-effect of this American Express (AXP) upgrade?–while Goldman Sachs (GS) fell 0.6% to $161 after naming a third co-head to its securities division, and 3M (MMM) declined 0.5% at $129.70. International Business Machines (IBM) dipped 0.1% to $177.14.
- [By Bloomberg]
Scott Eells/Bloomberg via Getty Images American Express (AXP) is seeking to broaden its customer base by offering its first no-fee credit product that grants holders access to all of the lender's rewards programs. The "EveryDay" card is AmEx's biggest debut in terms of the amount of money spent on development and marketing since AmEx launched its "Blue" brand in 2000, according to Ed Gilligan, president of AmEx. The card issuer, already the biggest by purchases, is seeking new kinds of customers including U.S. mothers by offering incentives such as extra points for shopping at supermarkets, Gilligan said. "This segment didn't think AmEx had a product that fit their needs," Gilligan said in an interview at the firm's New York headquarters. AmEx, whose business was built on charge cards that didn't allow consumers to carry a balance, is seeking ways to increase loans and net interest income, which Gilligan has said comprise a smaller part of revenue than for competitors. Loans are increasing at AmEx slightly faster than the rest of the industry and they're regarded as an important source of future revenue growth, he told analysts last month. Unlike with AmEx's charge cards, EveryDay customers will have a spending limit and won't be required to pay their balance in full each month, according to AmEx. They also won't get extra perks such as earning triple rewards for travel and dining or access to entertainment events that are available to some customers who pay an annual fee on other types of cards. Terms call for the new card to carry a zero-percent interest rate for the first 15 months and 12.99 percent to 21.99 percent afterward, according to the company. Customers will have access to the full rewards program, which includes perks like transferring travel points that aren't available on other AmEx products that don't have an annual fee such as Blue, the firm said. The new card comes with EMV anti-fraud technology -- named for founders EuroPay Interna
Top 10 Blue Chip Stocks To Buy Right Now: 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 Travis Hoium]
Colgate-Palmolive
Toothpaste and toothbrushes may not be exciting business, but it's consistent and consumers tend to develop habits they rarely break. Once they find a toothpaste brand they like, it could be years before they try another one. That leads to another incredibly consistent business for Colgate-Palmolive (NYSE: CL ) , one that has paid back investors with a dividend since 1895. �
5 Best Gold Stocks To Invest In 2015: 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 Jeremy Bowman]
Also sparking curiosity today were rumors that�Apple� (NASDAQ: AAPL ) was preparing to buy headphone-maker Beats Electronics for $3.2 billion. The acquisition would be the biggest in Apple's history, but would be a surprising one, as it does not seem to give the iPhone maker access to anything particularly unique, technology or otherwise. Headphones seem like a natural expansion for the iOS ecosystem, as Apple's earbuds can be uncomfortable and difficult to untangle, and Beats targets a similar customer. Beats also offers a music streaming service, but Apple recently rolled out its own in iTunes Radio last fall. The deal remains just a rumor at this point, and Apple shares finished down 0.4% on the day, indicating that investors may not be thrilled with the idea. With the tens of billions Apple has in its coffers, I'd like to see it moving toward more futurisitic technology if it's going to make a big-name acquisition like this one. �
- [By Amber Hestla, Michael J. Carr]
Traders did not seem to be impressed by the newest products introduced by Apple (Nasdaq: AAPL).
A less expensive, more colorful iPhone and thumbprint security measures might not drive a significant sales increase for Apple, a company that reported revenue of more than $169 billion in the past 12 months, but it is likely to boost revenue for its suppliers.
Top 10 Blue Chip Stocks To Buy Right Now: 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 Tim McAleenan Jr.]
And lastly, Mankiw mentions emerging markets. If you want to bet against the United States dollar and own a company that generates all of its profits outside the United States, it could be useful to take a look at Philip Morris International (PM). Asia makes up 37% of its profits. The Middle East, Africa, and Eastern Europe make up 27% of its profits. Smoking rates in countries like Indonesia are increasing at 10-25% annual rates. The Marlboro brand is gaining market share in Asia. The company is planning aggressive expansion into Central Africa. If you want emerging markets exposure, Philip Morris International could be a decent way to cover your bases.
- [By Melvin Backman]
Reynolds American (RAI) fell 2.6% in early trading, and Lorillard (LO), which Reynolds agreed to buy last week, is down 2%. Philip Morris (PM) shares fell nearly 1%, and Altria Group (MO) was down about 1.5%.
Top 10 Blue Chip Stocks To Buy Right Now: 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 Jeremy Bowman]
A day after reporting disappointing comparable sales, McDonald's� (NYSE: MCD ) shares jumped today, gaining 3.8% after its CFO said the fast-food chain could take greater steps to return cash to shareholders. CFO Pete Bensen said the company was looking at ways to optimize its capital structure, which could include selling stores in Asia to franchisees or cutting SG&A costs, and taking on more debt to fund greater share buybacks. Over the last three years, the company has returned to $16.5 billion to shareholders through dividends and share repurchases, not bad for a stock with a market cap just under $100 billion. At a time when the Golden Arches' operations are struggling, perhaps a change in the capital structure is the best way to make sure this cash cow keeps delivering for investors.
- [By Rick Munarriz]
The Wall Street Journal is reporting that McDonald's (NYSE: MCD ) hosted a webcast with its franchisees last month, alerting them to an unwelcome trend in employee friendliness.
- [By Dividend Growth Investor]
After all, a company like McDonald�� (MCD) would keep being in the restaurant business for as long as possible. Its business model of delivering a consistent customer experience on a global scale should not change much. Its expansion might come not just by opening new stores internationally however, but by renovating existing locations, innovations in its menu and attracting new customers from a young age. These megatrends do not happen overnight, and would likely take years to develop. Another example includes Wal-Mart (WMT), which is the world�� largest retailer. While the company has largely saturated US market, it could grow substantially abroad. In addition, it could also grow organically by making stores more appealing to consumers. At the same time, if investors use the company�� product or service in their everyday lives, they might gain an insider�� look at things, even before the annual reports are out.
- [By Dan Caplinger]
Co-CEOs Ronald Shaich and Bill Moreton have been an important part of what's gotten Panera to where it is today. Partnerships with high-quality food and beverage suppliers have helped Panera deliver more of what customers are looking for. Moreover, even though the company hasn't been the first-mover in many of its moves -- it chose the same supplier that McDonald's (NYSE: MCD ) uses for its gourmet coffee, and Starbucks (NASDAQ: SBUX ) first started emphasizing natural and organic food offerings -- Panera has been smart about taking those themes and applying them more specifically to its own business.
Top 10 Blue Chip Stocks To Buy 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 Ben Levisohn]
The S&P 500 rose 0.1% to 1,844.86, while the Dow Jones Industrial Average fell 0.3% to 16,373.34. The Dow was dragged down by International Business Machines (IBM) and Caterpillar (CAT), while the S&P 500 got a lift from Textron (TXT), Best Buy (BBY) and Norfolk Southern (NSC).
- [By WALLSTCHEATSHEET]
IBM is a global technology company that provides essential products and services to companies and consumers worldwide. Chinese PC maker Lenovo Group agreed to buy IBM Corp’s low-end server business for $2.3 billion. The stock has been struggling over the last couple of years and is currently trading sideways. Over the last four quarters, earnings have been rising while revenues have been declining, which has left investors optimistic about IBM�� earnings announcements. Relative to its peers and sector, IBM has been an average year-to-date performer. WAIT AND SEE what IBM does the rest of the quarter.
Top 10 Blue Chip Stocks To Buy Right Now: 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 MONEYMORNING]
Next, my (narrowly defined extractable) reserve multiples approach supports an observation I have made several times in Oil & Energy Investor. Super large companies, such as Exxon Mobil Corp. (NYSE: XOM), BP plc (NYSE: BP), Chevron Corp. (NYSE: CVX), and the like, may make a lot of money. But they do not end up with the best figures using those multiples.
- [By John Maxfield]
In terms of individual stocks, shares of Chevron (NYSE: CVX ) are headed higher in afternoon trading after the oil giant reported first-quarter earnings (link opens PDF) before the bell. While the oil giant saw its revenue and net income decline by 6.4% and 4.5%, respectively, its earnings per share managed to come in ahead of estimates. For the three months ended March 31, the company earned $3.31 per share compared to the consensus estimate of $3.09 per share. Like ExxonMobil, which reported yesterday, Chevron's top and bottom lines were the latest victims of falling global oil prices.
- [By Jeff Reeves]
But it�� hard to fight against this kind of big negativity, or the fact that other stocks like Chevron (CVX) or U.K.-based BP (BP) look like better bargains based on forward earnings projections and current valuations.
- [By Arjun Sreekumar]
Several oil majors have even plowed billions of dollars into prospecting areas offshore Africa, despite the risk of unexpected actions by conflict-ridden governments. For instance, Chevron (NYSE: CVX ) has acquired exploration blocks in Liberia and Sierra Leone, while Royal Dutch Shell (NYSE: RDS-A ) and Brazilian oil giant Petrobras (NYSE: PBR ) are jointly exploring deepwater acreage off the coast of Tanzania.
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