Investors have been running on a high for the last several months as all major U.S. indices have reached new record levels seemingly month after month. Sentiment on the stock market has never been better, and investors are holding out to see how developments in the field of Artificial Intelligence (AI) and Machine Learning (ML) will further bolster corporate profitability as major companies are rushing to get ahead in the race for innovation.
Blue chip companies often have a long-standing reputation of success and can provide investors with better buoyancy even as bearish sentiment sinks its teeth into the stock market. Blue chip companies are the leaders of their industry, and with plenty to choose from, these names on our list will be familiar to investors.
Bank Of America Corporation
- Industry Sector: Finance
- Market Capitalization: $317.66 Bn
- Year-to-Date Performance: +19.82%
- 52 Week High: $41.20
- 52 Week Low: $24.96
- Dividend Yield: 2.36%
Most major U.S. banks are set to start delivering quarterly earnings by the end of the second trading week of July, and Bank of America (NYSE: BAC) will be among the several names giving verdicts on their current financial conditions. However, analysts estimate that most large for-profit banks will deliver weaker-than-expected earnings on the back of slower interest payments and setting more cash aside to cover deteriorating loans.
Nevertheless, looking back at Bank of America’s Q1 2024 earnings report shows that the bank is in a strong position to survive the current credit and interest crunch many consumers are experiencing. In Q1 2024 the bank reported a net income of $2.7 billion, with revenues down 5% to $10.2 billion.
The bank further reported that they had an overall decline of average deposits of $952 billion, which was a decrease of 7% from the quarter before, but roughly 32% above pre-pandemic levels. A major highlight for the quarter was that Bank of America added nearly 245,000 new customer checking accounts, and marked their 21st consecutive quarter of growth. In total, the bank now holds nearly 36.9 million consumer checking accounts, and 3.9 million small business checking accounts.
Hershey
- Industry Sector: Consumer Goods
- Market Capitalization: $37.21 Bn
- Year-to-Date Performance: -4.19%
- 52 Week High: $248.93
- 52 Week Low: $178.82
- Dividend Yield: 3.00%
When it comes to an all-American candy and snack company, there is perhaps no better name in the business than Hershey (NYSE: HSY). The company has been around for nearly 130 years, and through strategic acquisitions, Hershey has managed to remain relevant, even in a fast-changing consumer market, and their products can now be found in nearly every kitchen cupboard in North America.
Currently, the company operates two primary business segments, Hershey’s North American Confectionery and North America Salty Snacks. Additionally, the company has a third segment – Hershey’s International – which exports consumables to countries in Europe and regions in Latin America. During its Q1 2024 earnings, Hershey’s reported overall sustainable growth, with its Confectionery segment seeing a 10.4% increase in sales totaling more than $2.7 billion, and the Salty Snacks segment rose 1.9% to $275 million compared to the same period last year.
Hershey’s Salty Snacks segment includes products such as Skinny Pop and Dot’s Homestyle Pretzels, and it’s important to note that this segment didn’t exist five years ago and now makes up nearly 8% of the company’s overall revenue. Elsewhere on the international market, Hershey’s reported a slow improvement of 1.8% compared to the same period last year and reported total sales of $270.3 million. International sales were on track with the company’s estimates as stronger shipment deliveries helped bolster sales.
TJX Companies (NYSE: TJX)
- Industry Sector: Retail
- Market Capitalization: $126.76 Bn
- Year-to-Date Performance: +20.25%
- 52 Week High: $112.46
- 52 Week Low: $82.25
- Dividend Yield: 1.34%
Next on the list of blue chip winners is the multinational retail conglomerate TJX Companies (NYSE: TJX) which operates household brand name stores such as TJ Maxx and TK Maxx, HomeGoods, HomeSense, Marshalls, and Sierra. The company acquired the Canada-based Winners stores back in 1990 and currently has more than 304 stores located across the country. The company has witnessed overwhelming organic growth in recent months, as inflationary pressure has pushed more consumers into cutting back on their monthly bills, and some switching to more affordable retailers, which in this case had been a major gain for TJX Companies.
For Q1 2025 fiscal quarterly results, TJX reported a strong revenue improvement of 5.91%, with total revenue of $12.48 billion. Net income rose by 20.09%, with total quarterly income ending at $1.07 billion, while the company’s overall net profit margin was up by nearly 14% during the same reported period.
Comparable store sales were up across the board, with their U.S. flagship stores, TJ Maxx and HomeGoods seeing an improvement of 2% and 4%, respectively. Canadian-based comparable store sales rose 4%, while TJX International had an overall improvement of 3% compared to the Full Year 2024.
The stronger financial performance has helped stock market gains, with total year-to-date stock prices up by more than 20%, and with the company seeing a 19.63% improvement since their last quarterly results.
Sanofi (NASDAQ: SNY)
- Industry Sector: Pharmaceutical
- Market Capitalization: $125.74 Bn
- Year-to-Date Performance: -0.030%
- 52 Week High: $55.72
- 52 Week Low: $42.63
- Dividend Yield: 4.08%
Sanofi SA (NASDAQ: SNY) is the product of several mergers and acquisitions and primarily engages in the research and development (R&D) of pharmaceutical products, mainly in the prescription market. Over the years the company has increased its operations and now develops several over-the-counter medications. Based in Paris, France, Sanofi is part of the Euro Stoxx 50, which is an index designed to represent the 50 largest companies in the Eurozone.
For Q1 2024, Sanofi reported robust growth, with a 7% improvement in sales, which was largely driven by overall improvement in new product launches. Across the board, sales of their primary pharmaceutical products including Dupixent, Nexviazyme, and ALTUVIIIO had strong gains, with Dupixent, a prescription medication that helps to treat allergic diseases in adults and children, having a sales improvement of nearly 25%.
Other business segments including consumer healthcare rose 9%, largely driven by the acquisition of Qunal as part of their physical and mental wellness segment. Similarly, the company has been focused on boosting R&D, with expenses growing 11.8%, which reflects the company’s strategic shift of resources.
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