Zacks Investment Ideas feature highlights: Caterpillar, Chevron and Amgen
For Immediate Release
Chicago, IL – December 29, 2022 – Today, Zacks Investment Ideas feature highlights Caterpillar Inc. CAT, Chevron CVX and Amgen Inc. AMGN.
3 Top-Performing Blue Chips of 2022
Blue-chip stocks are shares of fully-established companies that have consistently provided quality, reliability, and the ability to operate profitably in both good and bad times.
They boast a strong market reputation thanks to their consistent success, stable growth, and shareholder-friendly nature.
In addition, blue-chip stocks can shield investors against the market’s abrupt moves, something many market participants have sought in a historically-volatile 2022.
Three blue-chip stocks – Caterpillar Inc., Chevron and Amgen Inc. – were all hot in 2022, as we can see in the year-to-date chart below.
Let’s take a closer look at each one.
Caterpillar Inc.
Caterpillar is the world’s largest construction-equipment manufacturer. The company’s earnings outlook has shifted positively as of late, helping land CAT into a favorable Zacks Rank #2 (Buy).
CAT is a Dividend Aristocrat; 2022 marked the company’s 29th consecutive year of increased dividend payouts.
The company’s annual dividend yields roughly 2%, modestly higher than its Zacks sector average. Additionally, CAT has grown its payout by 9% over the last five years.
In addition, CAT has consistently posted better-than-expected results, exceeding the Zacks Consensus EPS Estimate in each of its last ten quarters.
Just in its latest print, the company registered a 24% bottom-line beat paired with a 4.5% sales surprise.
Chevron
Chevron is one of the world's largest publicly traded oil and gas companies, with operations that span nearly all corners of the globe.
CVX has generated strong cash as of late; in its latest release, the company posted free cash flow of $12.3 billion, indicating a sizable 84% Y/Y increase.
In addition, CVX’s annual dividend yield currently stands at 3.2%, below its Zacks Oils and Energy sector average by a fair margin.
Still, the company’s 6% five-year annualized dividend growth rate helps to bridge the gap.
Chevron’s earnings are forecasted to soar in its current fiscal year (FY22) thanks to a boom in energy prices, with estimates calling for 135% Y/Y growth. The growth slows down in FY23, with the Zacks Consensus EPS Estimate suggesting a 13% Y/Y pullback.
Amgen Inc.
Amgen is one of the world’s leading biotechnology companies committed to unlocking the potential of biology for patients suffering from serious illnesses.
It’s hard to ignore the company’s dividend metrics; AMGN’s annual dividend currently yields a solid 2.9% paired with a 10.5% five-year annualized dividend growth rate.
Valuation multiples aren’t stretched; AMGN shares currently trade at a 14.9X forward earnings multiple, modestly above the five-year median value and nowhere near its Zacks Medical sector average of 22.7X.
Further, AMGN sports a Style Score of a “B’ for Value.
Bottom Line
Many investors have flocked to blue-chip stocks in 2022 in an attempt to shield themselves from volatility.
Blue-chip stocks are shares of companies that have fully established themselves, carrying a long track record of strong performance.
And for the cherry on top, they often pay dividends, providing a nice cushion to investors.
All three blue-chip stocks above – Caterpillar, Chevron and Amgen – all soared in 2022, leaving the S&P 500 in the dust.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Chevron Corporation (CVX) : Free Stock Analysis Report
Caterpillar Inc. (CAT) : Free Stock Analysis Report
Amgen Inc. (AMGN) : Free Stock Analysis Report
