4 Analyst “Strong Buy” Blue Chip Dividend Stocks to Grab Now After Q2 Earnings Blast – 24/7 Wall St.
Needless to say, 2022 has been a bad year for equity investors, and with a sharp rise in interest rates likely to come this week, inflation still rising to 40-year highs and unease hanging over investors. risks on Wall Street, things could get worse. before they get better. Although only time will tell, seasoned investors will tell you that the time to buy is when things look the ugliest, and for four major US companies, that time may be now.
One of the hallmarks of a bear market is the legion of analysts covering the stocks of the big banks, and the brokerage firms become very coy. If a business goes wrong, the proverbial baby is thrown out with the bathwater. Four large, blue-chip companies have already faced analyst concerns over profit losses, and while the short-term trajectory for these large companies may be difficult, the long-term upside is likely unchanged.
All four pay solid and reliable dividends, and are still rated Buy at BofA Securities, where we looked at their views on the four companies’ current issues. It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.
The former telecommunications company went through a long restructuring, cut its dividend and sold or merged underperforming assets. AT&T, Inc. (NYSE: T) provides telecommunications, media and technology services worldwide. Its communications segment offers wireless voice and data communication services; and sells handsets, wireless data cards, wireless computing devices, carrying cases and hands-free devices through its own stores, agents and third-party retail stores.
AT&T also provides data, voice, security, cloud, outsourcing, and managed and business services solutions, as well as customer premises equipment for multinational, small-to-medium business, and government customers and wholesale. In addition, this segment offers fiber optic broadband voice communication and traditional telephony services to residential customers. It markets its communication services and products under the AT&T, Cricket, AT&T PREPAID and AT&T Fiber brands.
The Company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This corporate section markets its services and products under the AT&T and Unefon brands.
AT&T posted very strong second quarter results, but the stock was hammered after the company lowered its free cash flow forecast for 2022. The BofA Securities team estimated that the company would also lower its forecast. for 2023.
Investors are handed a whopping 6.07% dividend, and analyst BofA is left with a buy rating and a solid target price of $25. The Wall Street consensus target is posted at $23.20. The stock closed Tuesday at $18.30.
International Business Machines
This blue-chip giant still offers investors an incredibly strong entry point. International Business Machines (NYSE: IBM) provides integrated solutions and services worldwide. The Company operates through four business segments: software, consulting, infrastructure and financing.
The Software segment offers hybrid cloud platform and software solutions, such as Red Hat, an enterprise open source solution; enterprise automation software, AIOps and management, integration and application servers; data and artificial intelligence solutions; and security software and services for threats, data and identity. This section also provides transaction processing software that supports mission-critical and on-premises customer workloads in the banking, airline, and retail industries.
The Consulting segment offers business transformation services, including strategy, business process design and operations, data and analytics, and systems integration services; technology consulting services; and cloud platform and application services.
The infrastructure segment provides on-premises and cloud-based server and storage solutions for its customers’ critical and regulated workloads; and support services and solutions for hybrid cloud infrastructure, as well as refurbishment and remarketing services for pre-owned equipment. While the financing area offers leasing, installment payment, loan financing, and short-term working capital financing.
IBM released results that also beat expectations, but warned that third-quarter results would likely come in below expectations, a major factor being the continued strength of the US dollar.
IBM investors benefit from a large dividend of 5.15%. The BofA Securities team lowered its price target on the venerable tech giant to $155 from $163 while maintaining a buy rating on the stock. The consensus target is posted lower at $143.05. Tuesday’s final trade was reported at $128.08.
This is another top telecom company that offers tremendous value at today’s levels. Warren Buffett’s Berkshire Hathaway owns an impressive 158.8 million shares of the company. Verizon Communications, Inc (NYSE: VZ) is one of America’s largest telecommunications companies. It provides wireless and wireline services to retail, enterprise and wholesale customers.
The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business went through a period of secular decline due to wireless substitution and cable competition.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber optic network and provides integrated business solutions to customers around the world.
Verizon reported results just below Wall Street expectations and the company also cut its full-year 2022 guidance. Patient investors will receive a great 5.70% dividend. BofA Securities is still bullish on the long-term for the company and reiterated a buy rating on the stock with a target price target of $64. The consensus is set at $58.03. The shares were last seen Tuesday at $44.92.
The giant retailer was hammered on Tuesday after reporting disappointing results for the quarter. Wal-Mart Stores Inc. (NYSE: WMT) is the world’s largest retailer that operates retail stores in the formats of Wal-Mart stores, supercenters, neighborhood markets and Sam’s Club in the United States, as well than a growing e-commerce company (including Jet.com). Internationally, Wal-Mart also has branches in several countries, including Argentina, Brazil, Canada, China, Japan, Mexico and the United Kingdom.
Each week, nearly 260 million customers and members visit the company’s 11,535 stores under 72 banners in 28 countries and e-commerce sites in 11 countries. The company had revenue of $514.4 billion in fiscal 2019. Walmart employs approximately 2.2 million associates worldwide.
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Walmart gave a surprise update after the closing bell on Monday and while U.S. same-store sales are expected to beat forecasts, the company pre-predicted negatively for the second quarter and cut sales by nearly 10%. earnings per share guidance for fiscal year 2022, noting that food inflation is weighing on discretionary spending. The company also warned of gross margin pressures that are expected to remain in place for the rest of 2022.
Shareholders receive a dividend of 1.84%. BofA Securities analysts lowered their price target to $145 from $160, but again, stick with a buy rating on the former discount retail giant. This compares to the higher consensus target which is displayed at $154.04 for now. Shares of Walmart were last seen Tuesday at $121.98 down nearly 9%.
Needless to say, none of these big companies went bankrupt, and none of them had extremely bad reports, but with a jittery market expecting more downside when it’s finally announced that we’re in a recession, many investors shoot first and ask questions later.
The good news for patient investors with a long-term horizon and dry powder in the form of cash, these blue chips are on sale, and since they could be on the watch for quite some time, there is no need to rush to buy full positions. . Scale buy stocks by grabbing a few now and adding more if they drop over the next few weeks and months.
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