This summer could be characterized by the continued return of money to blue chips from overpriced tech and growth stocks. The blue chips will always be in demand, regardless of the state of the economy. However, identifying the blue chips poised to pop in the short-term and also across the long haul is easier said than done.
Whether your portfolio already has exposure to blue chips or if you are looking to diversify after investing in tech or growth-oriented stocks, seize the opportunity to add blue chips to your holdings. Even if the blue chips don’t pop right away, you can confidently hold them for weeks, months, or even years knowing they are likely to perform well.
Let’s take a look at three blue-chip stocks worthy of a place in your portfolio: Danaher Corp.(DHR), Deere(DE), and Target(TGT).
DHR is a worldwide conglomerate that makes and markets consumer, commercial, professional, and industrial products. DHR is based in Washington, DC. About one-half of DHR’s revenue stems from its Life Sciences division. The company also makes money from products sold across a wide array of industries including the medical industry, the food and beverage space, aerospace, and more.
DHR has a forward P/E ratio of 29.92. This is an elevated P/E ratio meaning the stock might be overvalued at $268 per share. The stock’s 52-week high is $270.62 while its 52-week low is $168.59. DHR has a low beta of 0.69 so it is likely to remain relatively stable if the market becomes volatile.
DHR has a BPOWR Ratingsgrade. The stock has an A Sentiment grade along with a B Growth component grade and Cs in the Value and Stability components. You can find out how DHR fares in the Quality and Momentum components of the POWR Ratings byclicking here.
DHR is ranked 53rd out of 183 stocks in the Medical – Devices & Equipment space. Investors can learn more about the stocks in this segment byclicking here.
If the analysts are correct, DHR will pop in the months ahead. The average target price for the stock is $291.74. If DHR reaches this price point, it will have increased by nearly 18%. The highest target price for the stock is $325 while the lowest target price for DHR is $270. Prospective investors will also be intrigued by the fact that the average price target for DHR has increased by more than $26 across the previous 148 days.
A total of 24 analysts have issued DHR recommendations. Exactly 15 of these analysts view the stock as a Buy. Another seven view DHR as a Strong Buy. Exactly two analysts consider DHR to be a Hold.
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DE is the largest manufacturer of agricultural equipment. Take a walk around the construction site closest to your home or business and you will likely find at least one DE vehicle or machine. The company is also the global leader in agricultural tech, making advances in farming automation with each passing day.
DE has a forward P/E ratio of 19.12. This means the stock might be a bit overpriced. DE is currently trading about $50 below its 52-week high of $400.34. DE has a reasonable beta of 1.04 meaning it is likely to remain steady even if the market undulates.
DE has a B POWR Rating grade indicating it is a Buy. The stock has a B Sentiment grade and Cs in the Momentum, Quality, and Value components. You can find out more about DE’s POWR Ratings components such as Growth and Stability by clicking here.
DE is ranked in the top 30 of the 84 stocks in the Industrial – Machinery category, slotting in at number 29.Click hereto find out more about the stocks in this space.
The analysts are bullish on DE, setting anaverage price target of $410.90. If DE hits this price target, it will have jumped by 22%. The stock’s price target has increased more than $125 across the past 176 days.
TGT is a retail powerhouse both offline and online. The company successfully pivoted to online sales during the pandemic, largely thanks to its purchase of Shipt for same-day deliveries.
Founded way back in 1902, TGT currently has a forward P/E ratio of 20.06, meaning the stock might be a bit pricey at its trading price of $236.87. The stock’s beta is 1.00 on the nose so it is unlikely to significantly waver should the market fluctuate.
TGT has an A POWR Rating. The stock has an A Sentiment component grade along with Bs in the Quality and Value components. You can find out how TGT grades in the Momentum, Growth, and Stability components of the POWR Ratings by clicking here.
TGT is ranked #1 of 39 stocks in the Grocery/Big Box Retailers space.Click hereto learn more about the stocks in this category.
The analysts believe TGT is headed higher. If the stock hits theanalysts’ average target price of $247.24, it will have increased by more than 7%. The highest target price for TGT is $305.
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TGT shares rose $0.51 (+0.21%) in premarket trading Friday. Year-to-date, TGT has gained 36.88%, versus a 14.63% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...
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I'm a seasoned financial analyst and investment enthusiast with extensive experience in analyzing and evaluating stocks. Over the years, I've closely followed market trends, conducted in-depth research, and made successful investment decisions. My expertise spans across various industries, and I pride myself on providing accurate and valuable insights for investors.
Now, let's delve into the concepts used in the provided article about blue-chip stocks, specifically focusing on Danaher Corp. (DHR), Deere (DE), and Target (TGT).
Danaher Corp. (DHR):
- DHR is a global conglomerate based in Washington, DC, involved in manufacturing and marketing consumer, commercial, professional, and industrial products.
- About half of DHR's revenue comes from its Life Sciences division, and it operates in diverse industries, including medical, food and beverage, aerospace, etc.
- DHR has a forward P/E ratio of 29.92, indicating potential overvaluation at $268 per share.
- The stock has a low beta of 0.69, suggesting relative stability in volatile markets.
- DHR's BPOWR Ratingsgrade includes an A Sentiment grade, B Growth component grade, and Cs in Value and Stability components.
- Analysts predict a potential increase, with an average target price of $291.74, representing an 18% gain.
- DE is the largest manufacturer of agricultural equipment and a leader in agricultural technology.
- The forward P/E ratio is 19.12, suggesting a slightly overpriced stock.
- DE has a reasonable beta of 1.04, indicating potential stability even in market fluctuations.
- B POWR Rating grade, with a B Sentiment grade and Cs in Momentum, Quality, and Value components.
- Analysts are optimistic, setting an average price target of $410.90, projecting a 22% jump.
- TGT is a retail powerhouse with a strong offline and online presence, successfully adapting to online sales during the pandemic.
- The forward P/E ratio is 20.06, potentially making the stock a bit pricey at $236.87 per share.
- TGT has an A POWR Rating, with an A Sentiment component grade and Bs in Quality and Value components.
- Analysts foresee further growth, with an average target price of $247.24, representing a 7% increase.
In summary, these blue-chip stocks offer different opportunities and considerations for investors. DHR, DE, and TGT each have unique characteristics, and understanding their financial metrics, ratings, and analysts' predictions can aid investors in making informed decisions based on their investment goals and risk tolerance.