Five blue-chip stocks to watch that have high price-to-earnings ratio

Highlights

  • The net sales of Johnson & Johnson (NYSE: JNJ) surged 27.1% YoY in Q2, FY21.
  • The revenue of Microsoft Corporation (NASDAQ: MSFT) surged 21% YoY in Q4, FY21.
  • The total revenue of Walmart Inc. (NYSE: WMT) was US$141.04 billion in Q2, FY22.

The US stock markets saw significant losses in September due to various factors, including inflation worries and skewed demand and supply ratio in the economy. Besides, the Federal Reserve's deliberation to dial back its monetary support weighed on investors' sentiment.

Here we explore five blue-chip stocks that have a high price-to-earnings ratio.

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Johnson & Johnson (NYSE: JNJ)

JNJ is a New Jersey-based multinational company and develops covid-19 vaccines and medical devices and related products. It also has interests in consumer-packaged goods.

The stock traded at US$164.60 at 11:22 am ET on September 20, down 0.09 percent from its closing price of September 17. Its stock value increased by 5.27 percent YTD. The firm has a market cap of US$433.09 billion, a P/E Ratio of 24.74, and a forward P/E one year of 17.07. Its EPS is US$6.65.

The highest and lowest stock prices of the company for the last 52-week were US$179.92 and US$133.65, respectively. Its trading volume was 13,422,110 on September 17.

The net sales of the company increased by 27.1 percent YoY to US$23.3 billion in Q2, FY21. It reported net earnings of US$6.27 billion, compared to US$3.62 billion in Q2, FY20.

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Blue Chip Stocks: Microsoft, JPMorgan, NVIDIA, Walmart, JNJ

Source: Pixabay

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JP Morgan Chase & Co. (NYSE: JPM)

JPM is an investment banking company that provides a range of financial services to its clients. It is based in New York.

The stock of the company was priced at US$152.50 at 11:53 am ET on September 20, down 3.29 percent from its previous closing price. The JPM stock rose 25.27 percent YTD.

The market cap of the company is US$456.11 billion, the P/E Ratio is 10.18, and the forward P/E one year is 11.22. Its EPS is US$14.99.

The highest and lowest stock prices of the firm for the last 52 weeks were US$167.44 and US$91.38, respectively. Its share volume on September 17 was 25,608,020.

The company reported a revenue of US$30.5 billion in Q2, FY21, compared to US$33.1 billion in the year-ago quarter. Its net income was US$11.94 billion, compared to US$4.68 billion in Q2, FY20.

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Microsoft Corporation (NASDAQ: MSFT)

It is a Redmond, Washington-based technology company that manufactures various software and hardware for computers.

The shares of the company traded at US$293.51 at 12:03 pm ET on September 20, down 2.12 percent from its closing price of September 17. Its stock value surged 37.75 percent YTD.

The firm has a market cap of US$2.21 trillion, a P/E Ratio of 36.54, and a forward P/E one year of 34.83. Its EPS is US$8.05.

The highest and lowest stock prices of the company for the last 52 weeks were US$305.84 and US$196.25, respectively. Its trading volume was 41,309,300 on September 17.

The company's revenue increased by 21 percent YoY to US$46.2 billion in Q4, FY21. Its net income came in at US$16.5 billion, an increase of 47 percent from the year-ago quarter.

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Nvidia Corporation (NASDAQ: NVDA)

It is a Santa Clara, California-based technology company that specializes in manufacturing graphics processing units (GPU) for computers. The GPUs are primarily used for gaming and other related professional services.

The stock of the company was priced at US$209.11 at 12:16 pm ET on September 20, down 4.52 percent from its previous closing price. The NVDA stock jumped 67 percent YTD.

The market cap of the company is US$524.47 billion, the P/E Ratio is 74.79, and the forward P/E one year is 61.34. Its EPS is US$2.80.

The highest and lowest stock prices of the firm for the last 52 weeks were US$230.43 and US$115.67, respectively. Its share volume on September 17 was 29,450,280.

The company's revenue grew 68 percent YoY to US$6.50 billion in Q2, FY22. Its net income was US$2.37 billion compared to US$622 million in Q2, FY21.

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Five blue-chip stocks to watch after Fed’s stimulus tapering

Source: Pixabay

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Walmart Inc. (NYSE: WMT)


It is an Arkansas-based retail company. The company manages various discount store operators and other related stores.

The shares of the company traded at US$143.56 at 12:24 pm ET on September 20, down 0.81 percent from its closing price of September 17. Its stock value ticked down 1.23 percent YTD.

The firm has a market cap of US$400.77 billion, a P/E Ratio of 40.49, and a forward P/E one year of 22.97. Its EPS is US$3.55.

The highest and lowest stock prices of the company for the last 52 weeks were US$153.66 and US$126.28. Its trading volume was 24,346,370 on September 17.

The company's total revenue was US$141.04 billion in Q2, FY22, up 2.4 percent from the year-ago quarter. Its consolidated net income came in at US$4.36 billion, compared to US$6.43 billion in Q2, FY21.

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Bottomline


The blue-chip stocks usually remain steady compared to other stocks in the market. Investors typically invest in these stocks for profits in the long run as they are considered more reliable. However, investors should closely study the company and the market trends before investing.

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