CVX, UNH, MRK, AAPL and PG
Blue chip companies are made up of stocks of popular companies that are industry leaders. The company tends to have a strong track record, making it a favorite for some investors.
Although the companies also offer strong returns, they could be affected by the uncertainties of the broader market. For example, most major companies have been under pressure this year due to rising inflation and fears of a looming recession.
The US Federal Reserve is raising interest rates to bring down inflation, which has slowed economic growth while raising fears of a possible recession.
Several investors are exploring opportunities in blue chip stocks, given their robust business model. Additionally, blue chip stocks can also be considered dividend aristocrats, which makes them attractive to some investors.
Let’s take a look at some blue-chip stocks that could be in the spotlight amid market turmoil.
Chevron Corporation (NYSE:CVX)
Oil and gas firm Chevron Corporation (NYSE: CVX) has returned 26.09% year-to-date (YTD), suggesting it has maintained steady momentum in recent months. On a yearly basis (YoY), it gained 49.78%.
At the time of writing, CVX is trading around 18% lower than its 52-week high of US$182.40 (June 8, 2022) and around 59% higher than its 52-week low of 92 US$.86 (August 19, 2021).
CVX stock has a Relative Strength Index (RSI) of 50.29 as of July 25. Notably, the RSI fluctuates between zero and 100. While zero to 30 means oversold and 70 to 100 means overbought, 50 to 70 falls under the neutral category.
The $290.59 billion market capitalization company reported revenue of $54.37 billion in the first quarter of FY22, while its net profit was $6.27 billion, or $3.22 per diluted share.
Its current yield and annualized dividends are 3.94% and $5.68, respectively. The current yield is the annual income that one derives from an investment (dividend or interest) in relation to the price of the security.
In the first quarter of 2021, its revenue and net profit were $32.02 billion and $1.39 billion, respectively. Its diluted EPS was $0.72.
Source: ©Kalkine Media®; © Canva via Canva.com
UnitedHealth Group Incorporated (NYSE: UNH)
A major healthcare player, UnitedHealth Group Incorporated (NYSE:UNH), reported its FY22 second quarter results on July 15, after which its stock price rose significantly.
UNH stock rose 6.82% in one month. On a YTD basis, it posted gains of 5.44% while increasing 26.75% over the past 12 months.
The $496.61 billion market cap company posted revenue of $80.3 billion in the last quarter, up 13% year-on-year, while its profits from the deal were $7.1 billion. In the first quarter of FY21, its operating profit was US$6 billion.
At its current price, it has traded down about 4% from its 52-week high at US$553.29 (April 14, 2022) and more than about 38% from its low of 52 weeks at US$383.12 (October 1, 2021). ).
UNH’s current yield is 1.27%. Its annualized dividend is $6.60.
Merck & Company, Inc. (NYSE:MRK)
The leading pharmaceutical company, Merck & Company, Inc. (NYSE: MRK), has a current yield of 3.06% and its annualized dividend is $2.76. The $228.85 billion market capitalization company has made gains of 18.12% year-to-date while climbing 16.75% year-on-year.
The Kenilworth, New Jersey-based company’s sales were $15.90 billion in the first quarter of FY22, up 50% year-on-year. Its net income was $4.31 billion, or $1.70 per share, up sharply from $2.74 billion, or $1.08 per share in the first quarter of the fiscal year. 21.
Its RSI is 46.25. MRK’s five-day average share volume is 8,656,646 and its 30-day average volume is 11,430,234.
Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL), has a current yield of 0.6%, while its annualized dividend remains at $0.92.
The US$2.65 trillion market capitalization company was currently trading around 16% below its 52-week high of US$182.94 (January 4, 2022) and around 18% below from its lowest price of US$129.04 (June 16, 2022). ) in the same period.
The iPhone maker has posted gains of 2.95% in one year while falling 13.86% since the start of the year. Notably, most mega-cap stocks have been under pressure this year as investors traded cautiously amid market uncertainties.
Its second-quarter revenue increased 9% year-over-year to $97.27 billion in fiscal 2022, and its net profit was $25.10 billion, or $1.52. per diluted share. In contrast, its net profit and diluted EPS were US$23.63 billion and US$1.40 in Q2 FY21.
Procter & Gamble Company (NYSE: PG)
Consumer goods company Procter & Gamble Company (NYSE: PG) has a current yield of 2.55%. Its annualized dividend is $3.653.
Even though PG stock has traded in the red this year, slipping about 12% year-to-date, it has risen 3.01% annually. Procter & Gamble’s ROI is 50.73.
Its current trading price was around 13% below its 52-week high of US$165.35 (January 21, 2022) and around 11% higher than its 52-week low of US$129.50 ( June 15, 2022).
The Cincinnati, Ohio-based company on July 12 declared a quarterly dividend of $0.9133 per share on its common stock (payable on or after August 15).
Based on generally accepted accounting principles (GAAP), its net sales increased 7% year-over-year to US$19.4 billion in the third quarter of FY22, while its diluted EPS increased 6 % to reach US$1.33 on an annual basis.
At the end of the line :
Investors are watching earnings season closely to learn how companies have weathered market uncertainties. Moreover, the GDP, which is due to be released this week, would also be closely monitored.
Although blue-chip stocks are more popular among conservative investors, some risk-tolerant investors are also exploring opportunities in the segment, as stocks tend to offer stability during market downturns.
However, the Dow Jones Industrial Average, which includes the top 30 blue-chip stocks, has fallen 12.22% year-to-date (YTD), while rising 3.65% this month.