The best undervalued stocks to buy now? 5 top stocks to watch


Check out these blue chip stocks on the stock market today

The sell-off of technology, especially among small-cap growth stocks, is rippling through the stock market. And if you’re looking for some great New Year deals to do with yourself, there are sure to be some great options to consider right now. If you’re wondering where to invest your money today, why not take a look at these top stocks.

What are some of the characteristics that blue-chip stocks typically have? The best are constantly increasing their income and earnings per share and have strong balance sheets. Simply put, you want to invest in constantly growing businesses no matter what is going on in the wider market. But that doesn’t mean these companies are foolproof. They too will be subject to market forces and will rise and fall in line with larger market movements. Given that many of them have been under pressure in recent months, would you consider making a list of blue chip stocks to buy on the stock exchange today?

The best blue-chip stocks to watch right now

FedEx

Pivot of parcel delivery FedEx surprised investors with higher than expected profits on Thursday. For its fiscal second quarter, the company reported earnings per share of $ 4.83 on revenue of $ 23.5 billion for the quarter. Despite the impressive quarter, workforce inflation is still a problem, but the company appears to be handling it well. Recall that in September, higher labor inflation and supply chain disruptions led the company to lower its forecast for fiscal 2022. Fortunately, higher revenues per shipment helped offset these costs.

Notably, one of the highlights of the company’s earnings call would be the update to its earnings outlook for fiscal 2022. Thanks to the current momentum in its business, FedEx is restoring its original estimates after the have lowered in September. For the year, the company now expects annual earnings per share of between $ 20.50 and $ 21.50. At the same time, FedEx also announced a $ 5 billion share buyback program. This could suggest that management thinks the stock is undervalued. With FedEx seemingly moving into high gear across the board, would FDX stocks be on your blue chip stock list to buy now?

Source: TD Ameritrade CGU

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AT&T

Many investors are long gone AT&T for real. It has been a painful year for AT&T equity investors, to say the least. But that may soon change. Morgan Stanley analyst Simon Flannery yesterday gave the stock an “overweight” rating. T. Flannery believes the company will become a more streamlined company, focused on its core communications activities once its WarnerMedia entertainment division will have completed the merger with Discovery (NASDAQ: DISCA). In addition to this, the analyst also argued that the company is poised to benefit greatly from the growing demand for 5G network services.

Additionally, AT&T CEO John Stankey briefed shareholders last week. He called current trends in demand for the wireless industry as healthy, saying any seasonal increase in competition remains broadly in line with historical trends. Stankey is also confident in the sustainability of AT & T’s wireless dynamics. In addition, the company’s deployment plans are on track. In fact, in the coming years, investors can expect multiple opportunities from the country’s largest fiber network, including increased consumer and business penetration. Given this exciting news, is T-share worth investing in right now?

T stock chartSource: TD Ameritrade CGU

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ExxonMobil

Another top-notch stock to consider is the oil and gas giant ExxonMobil. Overall, ExxonMobil is an industry heavyweight with its massive refining operations. Tastes that meet the growing energy needs of today’s world. With ExxonMobil’s current presence in the market, Exxon is expected to continue to profit from its oil wells for decades to come. Not to mention that it also has a significant natural gas activity, which allows it to diversify its demand for oil.

There is no doubt that the price of oil itself is the main driver of profitability for major oil companies. As with many commodities, oil prices tend to fluctuate throughout the year due to seasonality. With the potential for a colder winter, this sets the stage for higher oil prices over the coming year. To top it off, the company’s current 5.7% dividend yield could be another reason investors love this stock so much. Given all of this, would you include XOM stock on your watchlist until 2022?

XOM stock chartSource: TD Ameritrade CGU

Free Mercado

Free Mercado operates one of the largest e-commerce platforms in Latin America. The company’s platform is accessible to consumers in 18 Latin American countries. And it is actively taking steps to expand in those markets. For example, he announced the acquisition of Redelcom earlier this week. Redelcom is a Chilean provider of high-tech point-of-sale (POS) terminal payment services. This acquisition would be in synergy with the POS division of MercadoLibre, MercadoPago. With Redelcom, MercadoLibre appears to be targeting the small names to come onto the Latin American retail scene.

Additionally, the company also saw green across the board in its latest quarterly earnings report released last month. In it, MercadoLibre recorded total revenue of $ 1.86 billion, marking a solid 66% year-over-year increase. During the same period, it also reported gains of over 530% in its net income and earnings per share. In addition, its unique active users jumped to 78.7 million in the last quarter. After slipping around 40% from its all-time high, would MELI stock be one of the most undervalued stocks to buy?

MELI stock chartSource: TD Ameritrade CGU

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Clorox

Arguably one of the most contrarian choices here is Clorox. For the uninitiated, it is a global manufacturer and distributor of consumer and professional products. In short, the company’s flagship offerings include its bleaching and cleaning products. If you’re worried about inflation, it’s comforting to know that Clorox has the pricing power to mitigate these effects. If Omicron were to pose a greater threat, the demand for cleaning products could increase again.

After unprecedented growth in 2020, it faces extremely difficult year-to-year comparisons. But if we look at it over 2 years, the growth rate remains respectable. With a lot of the downsides seeming to be ingrained, investors might be able to make a decent return. Additionally, the company is used to delivering consistent double-digit returns on capital and profit margins. Safe to say, consumers have turned and continue to turn to Clorox amid the current pandemic. Should investors do the same with CLX stocks?

CLX stock chartSource: TD Ameritrade CGU


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