6 ASX Blue chip stocks for Christmas

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Highlights 

  • Blue chip companies are reputative firms with large market caps.
  • The blue-chip stocks generally remain less affected by the market downturns.

Blue-chip stocks belongs to the companies with large market cap and excellent reputation. Investors majorly look after reliable and safe investment and thus, they tend to look after established companies that are financially resilient against market fluctuations.  

                   

6 ASX Blue chip stocks for Christmas

 

This festive season, with pandemic still lasting, blue-chip stocks seem to be a safe option to look at for investment. Below are few blue-chip stocks that investor’s may keep on their radar.

RELATED READ - Five ASX blue-chip stocks with largest market cap

Telstra Corporation Limited (ASX:TLS)

Telstra Corporation is an ASX listed telecommunications carrier that provides telecom and other information services. As per its FY21 annual report –

  • Telstra’s total income stood at AU$23.1 billion and the company’s net profit after tax stood at AU$.19 billion.
  • The telecom company also returned AU$1.9 billion to its shareholders for the prior year.

Telstra’s underlying EBITDA on guidance basis stood at AU$6.7 billion for FY21.

On 19 October, TLS shares closed at AU$3.830, with a market capitalization of AU$46.02B.

Woodside Petroleum Limited (ASX:WPL)

Woodside Petroleum is an ASX listed oil and gas exploration firm in Australia. According to WPL’s FY21 half yearly results published in August - 

  • The company reported record net profit after tax of AU$317 million, up 108% from the prior year.
  • Company’s free cash flow also increased by 18% to AU$311 million mand the operating revenue stood at AU$2.5 billion.

In August, the company announced all stock merger with BHP Group to create a global energy company with a combined market capitalization of AU$41 billion. Woodside also provided FY21 full year line-item guidance where –

  • Production costs stood at AU$450 – AU$550 million and trading costs of AU$1.1 billion to AU$1.3 billion.
  • Other expenses (general, administrative, and other costs) stood at AU$150-AU$250.

On 19 October, WPL shares closed at AU$24.960, with a market capitalization of AU$ 24.48B.

RELATED READ - 5 hottest ASX blue-chip stocks with fully franked dividend

Santos Limited (ASX:STO)

ASX listed Santos Limited is a gas and petroleum exploration firm in Australia. As per STO’s  FY21 half year results announced in August –

  • The Group’s free cash flow stood at US$572 million, up 33% from prior year.
  • Santos reported underlying profit of US$317, up 50% from FY2020.

The company has maintained its FY21 guidance which is given below –

  • Production at million of barrels of oil equivalent at 84-91(mmboe) and sales volumes at 98-105 mmboe.
  • The base capital and major growth expenditure stood at US$900 million and US$700 million respectively.
  • Company’s upstream production costs stood in the range of US$8.00 -US$8.50/boe.

On 19 October, STO shares closed at AU$7.380, with a market capitalization of AU$15.49B.

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South32 Limited (ASX:S32)

South32 Limited is an Australia based diversified mining and metals company. As per its FY21 annual report –

South32 has recently announced to acquire 45% interest in Sierra Gorda Copper Mine. As per its FY22 production guidance –

  • Worsley and Brazil Alumina stood at 3,965 KT and 1,300KT and the Hillside and Mozal aluminium production stood at 720 and 273 KT.
  • The total saleable coal production is likely to decline by 5% to 7.3 Mt in FY22 and Australia Manganese stood at 3,500Kt.

On 19 October, S32 shares closed at AU$3.880, with a market capitalization of AU$18.51B.

SEEK Limited (ASX:SEK)

SEEK Limited is an Australia based operator of online employment classifieds, education, and training. As per its FY21 full year results –

  • The company reported record EBITDA of AU$474 million, up 15% from prior corresponding period.
  • SEEK’s revenue also increased by 1% to AU$1.59 billion through continued operations.

Under its FY22 guidance, SEEK reported –

  • EBITDA to be in the range of AU$425 million to AU$450million and the revenue is assumed to be in the range of AU$950 million to AU$1 billion.
  • NPAT is expected to be in the range of AU$190 million to AU$200 million.

On 19 October, SEK shares closed at AU$32.440, with a market capitalization of AU$11.39B.

BHP Group Limited (ASX:BHP)

BHP Group is an Australia based global resource company. The company delivered outstanding financial results in FY2021. As per its FY21 annual report –

  • Company’s free cash flow stood at US$19.4 billion, up 140% from the prior year.
  • BHP maintained its EBITDA margin by 64%, up 11% points and the underlying EBITDA stood at US$37.4 billion, up 69%.
  • BHP’s profit from operations also increased by 80% to US$25.9 billion.

As per its FY22 guidance, the Group’s capital expenditure stood at US$9 billion for FY22.

On 19 October, BHP shares closed at AU$38.390, with a market capitalization of AU$115.62B.


 


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