Best Blue Chip Stocks To Buy Right Now


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An upbeat reading on U.S. retail sales isnt enough to keep U.S. stock indices from tanking today. The Dow dropped more than 200points in late afternoon market action.

The Dow Jones Industrial Average dropped 1.19% and the S&P 500 fell 1% while the Nasdaq Composite fell 0.6%.

Energy and financial shares in the S&P 500 led the declines with the Energy Select Sector SPDR ETF (XLE) and the Financial Select Sector SPDR ETF (XLF) falling 1.5% and 1.3%respectively.


Stock indices have fluctuated severely this week. The Dow posted its biggest gain since March on Tuesday, only to record its worst fall since Feb. 11 the next day. As of now, the blue chip index is poised to record its third straight weekly loss.

Investors are facing a variety of overhangs, from cloudy expectations for corporate earnings to next months Federal Reserve meeting and the UK is poised to vote on whether to exit the European Union.

Best Blue Chip Stocks To Buy Right Now: Brown(n)


Advisors’ Opinion:

  • [By Alex Jordon]

    He already owns a good chunk of NetSuite (N), whose revenue grew 35% last quarter, beating earnings estimates by $0.03 a share. Ellison’s been profiting from the cloud while dismissing its significance. With the Salesforce agreement his company is, too. (Fool)

  • [By Arie Goren]

    On November 5, Oracle (NYSE:ORCL)confirmed that it has finally completed the acquisition of Netsuite (NYSE:N) for $9.3 billion in cash, or $109 per share that the company had initially offered. In my previous article about Oracle, I had suggested that the acquisition of NetSuite, the cloud business application software company, is a smart move by Oracle. What’s more, it is not paying an excessive price for the deal. In fact, Oracle insisted that it will not pay more than what it had first offered despite the resistance from T Rowe Price (NSDQ:TROW)which demanded $133 per share.

Best Blue Chip Stocks To Buy Right Now: CA Inc.(CA)


Advisors’ Opinion:

  • [By Laurie Kulikowski]

    We rate CA INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself. 

  • [By Laurie Kulikowski]

    The current dividend yield for CA is 3.55%, well above the 2.07% for the S&P 500. We believe the dividend is safe as improvements in marketing and sales should help return the top line to growth in the middle of calendar 2016, while still seeing modest margin expansion. 

  • [By Laurie Kulikowski]

    Regardless of the drop in revenue, the company managed to outperform against the industry average of 15.5%. Since the same quarter one year prior, revenues slightly dropped by 6.8%. Weakness in the company’s revenue seems to have hurt the bottom line, decreasing earnings per share.


    Net operating cash flow has decreased to $45.00 million or 31.81% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm’s growth is significantly lower.

     

  • [By Laurie Kulikowski]

    The gross profit margin for CA INC is currently very high, coming in at 85.27%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.31% trails the industry average.

     

Best Blue Chip Stocks To Buy Right Now: region(DGLD)


Advisors’ Opinion:

  • [By Jim Robertson]

    The VelocityShares 3x Inverse Gold ETN (NASDAQ: DGLD) seeks to provideshort exposure to three times (3x) the daily performance of theS&P GSCI Gold Index. As with UGLD, DGLD would be doing this viafutures contracts.

Best Blue Chip Stocks To Buy Right Now: Chesapeake Energy Corporation(CHK)

Advisors’ Opinion:

  • [By Wayne Duggan]

    Trump is particularly enthusiastic about shale oil & gas and clean coal, which is good news for stocks such as Chesapeake Energy Corporation (NYSE: CHK), Halliburton Company (NYSE: HAL) and CONSOL Energy Inc. (NYSE: CNX).

  • [By Ben Levisohn]

    Chesapeake Energy (CHK) is usually viewed as a natural-gas play, but Citigroup’s Robert Morris and David Zutter contend that Chesapeake is “determined to disprove [the] perception” that it can’t meet oil production targets. They explain:


    Bloomberg News

    WhileChesapeake has historically been viewed as a more natural gas-focused E&P that has often missed on oil production expectations, it is determined to disprove this perception. After divesting non-core assets with ~8.2 MBbls/d of associated oil production this year, the company has begun to replace these volumes with growth from the Eagle Ford and Mid-Continent. As such, total oil production in October is projected to average ~91 MBbls/d, up 5% over Q3’16. Mgmt. stated last week that in now expects to boost oil production ~10% in Q4’17 over Q4’16 and ~20% in Q4’18 over Q4’17, which we believe is attainable. Even so, the Mid-Continent Wedge play in this effort is largely unproven though mgmt. said the potential in this area is tremendous.


    While Q4’16 Production Guidance Seems Conservative
    Based on 2016 guidance,Chesapeake projects Q4’16 production will decline ~60-140 MBOE/d, or 9-21%, sequentially. But we believe this is unlikely with Barnett (~40 MBOE/d) and Utica (~15 MBOE/d) projected to post the largest declines while Haynesville production is expected to increase with ~55 MMcfe/d added via the Q316 acquisition, enhanced completions here exceeding expectations and a recent 10,000-ft lateral well testing a 5,000 lbs/ft sand loading brought on line over the past week.

    And We Remain Above Guidance On 2017
    Even though mgmt. forecasts 2017 total ‘organic’ production will be flat to down 5%, based on our detailed and proprietary rig-count/type-curve driven models, we project organic production will increase 2% to average ~580 MBOE/d under a $2.0bn budget. The difference vs. Chesapea

  • [By WWW.KIPLINGER.COM]

    When it comes to energy stocks to watch, Chesapeake Energy Corporation (CHK) has to be on the top of the list.

    This past quarter, CHK continued on its transition plans to reduce its heavy debt load, remake its portfolio of assets and live to see another day. And it seemed at first, CHK was doing just that. The natural gas fracker, however, was hit by some pretty bad news at the end of the quarter.

  • [By Javier Hasse]

    The top losers in the index were:

    Chesapeake Energy Corporation (NYSE: CHK), down 10.39 percent Mosaic Co (NYSE: MOS), down 7.47 percent


    Related Link: Micron Set For Big Analyst Day…Stock Could Eventually Double, Says Credit Suisse

Best Blue Chip Stocks To Buy Right Now: Pilgrim's Pride Corporation(PPC)

Advisors’ Opinion:

  • [By Ben Levisohn]

    BMO Capital Markets analysts Kenneth Zaslow and Patrick Chen took a look at the valuations of Tyson Foods (TSN) and Pilgrim’s Pride (PPC) and decided they were afraid of heights. They explain why they cut Tyson Foods to Market Perform from Outperform…

  • [By John Udovich]

    Thanksgiving is almost here but the exit of both Pilgrim’s Pride Corporation (NYSE: PPC) and Smithfield Foods (NYSE: SFD) to focus on their chicken or pork businesses (the latter was also acquired by the Chinese) leaves just two big Thanksgiving turkey stocks, Hormel Foods Corporation (NYSE: HRL) and Seaboard Corporation (NYSEAMEX: SEB), for investors to consider. According to the American Far Bureau, a 16-pound turkey will (on average) come in at a total of $22.74 this year or roughly $1.42 per pound for a decrease of 2 cents per pound or a total of 30 cents per whole turkey, compared to 2015. The price drop may be a transition back to the norm as the significant bird flu outbreak last year hurt the nations supply of both turkey and eggs.

  • [By Peter Graham]

    The Q4 2016earnings report for mid cap chicken producer Pilgrim’s Pride Corporation (NASDAQ: PPC) scheduled for before the market opens on Thursday(February 9th). Pilgrim’s Pride Corporationis the sixth most shorted stock on the Nasdaq with short interest of 41.76%according to Highshortinterest.com. Theelevated short interest comes in the wake of the worstbird-flu outbreak in the US whichhad hurt demand and triggered import bans abroad.

Best Blue Chip Stocks To Buy Right Now: Garmin Ltd.(GRMN)

Advisors’ Opinion:

  • [By Peter Graham]

    A long term performance chart shows shares of supplier Ambarella Inc being a homerun for investors comparedto GoPro Incs performancewhileGarmin Ltd (NASDAQ: GRMN), whos Virb Action Camera intends to compete with GPROs offerings, has seen performance perk up a bit:

  • [By Leo Sun]

    The bears believe that since fitness trackers are cheap to manufacture, Fitbit’s core market will be commoditized and its brand will lose its premium appeal. High-end smartwatches and low-end fitness trackers are becoming cheaper, and challengers like Garmin (NASDAQ:GRMN) are stealing niche sports performance users away from Fitbit. To make matters worse, several Fitbit products were recently targeted in studies and lawsuits regarding the accuracy of their activity and heart tracking features.

  • [By Asit Sharma]

    Sometimes, in The Motley Fool’s “Better Buy” series, it’s not too difficult to identify the more attractive investment between two similar companies. In the matchup between health and fitness tracker leaderFitbit Inc. (NYSE:FIT) and GPS and wearables devices manufacturerGarmin Ltd. (NASDAQ:GRMN), the latter has a decisive edge, and I’ll briefly substantiate why below.However, if you happen to lean toward value situations or have a speculative bent, you may still be inclined to take a position in Fitbit, so in this article, we’ll also examine the contrarian case.

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