How do you find hyper-growth blue-chip stocks?

Summary

  • Companies whose earnings are higher than the average market growth are hyper-growth blue-chip stocks.
  • Procter & Gamble Company (NYSE: PG) has earnings per share of US$5.43 and an annual dividend of US$3.479.
  • Caterpillar, Inc (NYSE: CAT) reported a profit of US$140 million, up by 56 percent YoY.

Blue-chip companies are large, time-tested, well-known, and among the best in their respective sectors. They pay regular dividends to their shareholders.

However, not all blue-chip companies pay dividends.

They are listed on some of the reputed stock indexes like S&P 500, Nasdaq-100, or Dow Jones Industrial Average. Their market value is in trillions.

Growth stocks are companies that have consistent higher sales, earnings that are above the market average, and they are generally expensive, with a high P/E ratio. But investment in expensive stocks cannot be an issue if the returns are growing.

Generally, they own patents or have unique products or invest in newer technologies to stay ahead of their competitors. As a result, growth stocks tend to be volatile.

Also read: Top dividend paying financial stocks to consider

 

Source: Pixabay.

How to find hyper-growth blue-chip stocks?

Blue-chip companies with sales and earnings higher than the average market growth are hyper-growth blue-chip stocks. Investors can investigate financial reports of the blue-chip companies to understand earnings, P/E ratio, revenue, income, profit. In addition, investors should look into the return on equity, profit margins, share price performance and future earnings.

Investors can also check whether earnings before interest and tax of the companies growing for the past 3-4 years. Again, it is because investors remain loyal to such companies to regular growing returns.

Here we explore hyper-growth blue-chip stocks

Source: Pixabay.

Procter & Gamble Company (NYSE: PG)

Procter & Gamble Company is a US-based consumer products company.

Its stock traded at US$138.27 at 1.28 pm ET on July 15, up by 0.20 percent over the previous closing price. Stock prices of PG went up by 0.3 percent YTD and 11.06 percent YoY. The market capitalization of PG is US$338.8 billion.

The P/E ratio is 25.49 and the forward P/E 1 year is 24.51. Earnings per share are US$5.43, and the annual dividend is US$3.479. The current yield and the beta are 2.54 percent and 00.43. The 52-week highest stock price of PG is US$146.92, and the lowest is US$121.54. The share volume is 2,984,355.

PG reported total revenue of US$18.1 billion in Q1, 2021, and that was US$19.7 billion in Q4, 2020. Its gross profit was US$9.1 billion in Q1, 2021, and US$10.4 in Q4, 2020. And operating income was US$3.7 billion in Q1, 2021, and US$5.3 billion in Q4, 2020. Earnings before taxes and interests were US$3.9 billion and US$5 billion QoQ.

Also read: What are FAANG stocks?

Intel Corporation (Nasdaq: INTC)

Intel Corporation is a US-based multinational technology company engaged in cloud computing, data center, and PC solutions.

Its stock traded at US$55.77 at 1.52 pm ET on July 15, down by 1.31 percent over the previous closing price. Stock prices of INTC went up by 12.28 percent YTD and went down by 5.52 percent YoY. The market capitalization of PG is US$224.7 billion.

The P/E ratio is 12.51 and the forward P/E 1 year is 12.23. Earnings per share are US$4.45 and the annual dividend is US$1.39. The current yield and the beta are 2.44 percent and 0.61. 52 weeks highest stock price of INTC is US$68.49 and the lowest is US$43.61. The share volume is 9,837,996.

The total revenue of the company in Q1, 2021 was US$19.6 billion and US$19.9 billion QoQ. Gross profit was US$10.6 billion and US$11.3 billion QoQ. Operating income was US$ 3.6 billion in Q1, 2021, and US$5.8 billion QoQ. Earnings before interest and taxes were US$3.9 billion in Q1, 2021, and US$7.4 billion QoQ.  

Caterpillar, Inc (NYSE: CAT)

Caterpillar, Inc manufactures construction, mining products, and diesel and natural gas engines, industrial turbines, and so on.

Its stock traded at US$210.57 at 2.10 pm ET on July 15, down by 0.49 percent over the previous closing price. Stock prices of CAT went up by 15.60 percent YTD and 52.18 percent YoY. The market capitalization is US$115.5 billion.

The P/E ratio is 33.75 and the forward P/E 1 year is 22. Earnings per share are US$6.25 and the annual dividend is US$4.44. The current yield and the betas are 1.91 percent and 00.93. 52 weeks highest stock price of CAT is US$246.69 and the lowest is US$130.21. The share volume is 1,641,519.

CAT reported total revenue of US$639 million in Q1, 2021, down by 8 percent or US$56 million YoY. However, it reported a profit of US$140 million, up by US$50 million or 56 percent YoY. Q1 profit before income tax was US$196 million, up by US$69 million or 54 percent YoY. 

Walmart Inc (NYSE: WMT)

Walmart Inc is a retail company that operates hypermarkets and grocery stores.

Its stock traded at US$141.65 at 2.33 pm ET on July 15, up by 0.07 percent over the previous closing price. Stock prices of WMT went down by 3.33 percent YTD and increased by 7.14 percent YoY. The market capitalization of WMT is US$396.8 billion.

The P/E ratio is 32.94 and the forward P/E 1 year is 23.79. Earnings per share are US$4.30 and the annual dividend is US$2.20. The current yield and the beta are 1.56 percent and 0.46. 52 weeks highest stock price of WMT is US$153.66 and the lowest is US$126.28. The share volume is 4,045,241.

WMT reported total revenue of US$138.3 billion in Q1, 2021, a 2.7 percent increase YoY. Its US sales went up by 6 percent and e-commerce sales went up by 37 percent. Gross profit in Q1, 2021 was US$35 billion and that was US$36 billion in Q4, 2020.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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