When the market speaks, investors need to listen!
The market has been really jabbering this month, giving investors exact instructions about which companies it will favor and which ones it will punish through earnings season.
As General Electric (GE) recently demonstrated, any stock that falls short of Wall Street’s expectations will take a brutal hit. And we also learned from Wachovia (WB), companies can’t cut their dividends without severe consequences in the form of an immediate one-day whack of 8% to your share price.
That’s why, at Blue Chip Growth, I’m paying close attention to the big dividend-payers and making sure that these stocks are all in line to continue distributing and growing.
Strong Earnings? But Aren’t We in a Recession?
I know what you are asking yourself:
“How can companies report strong earnings in a recession?”
The answer is simple. While the U.S. is in a recession, the rest of the world isn’t. Right now, approximately 48% of the S&P 500’s earnings are from multinational stocks that operate around the globe.
That’s why now, more than ever, it’s important to invest in companies that are benefiting from the weak dollar and the strong global markets. Today, I’m going to introduce you to 5 stocks I just added to my Blue Chip Growth Buy List that are perfectly poised to profit from superior international sales and positive earnings growth.
Let’s start with a multinational oil and exploration company that goes to the ends of the Earth for top-notch research:
• This oil and gas exploration company just found what many analysts say could become North America’s next big natural gas field. This global enterprise is no stranger to emerging markets, either. It already has operations in Argentina, Australia, Britain and Egypt, and has recently raised its estimate on the area’s potential reserve worth, saying that as much as 16 trillion cubic feet of gas could be accessible from its land. This is excellent news for the company’s future strength.
Ever drive down an interstate and wonder who builds those large manufacturing plants? >•This leading international engineering and construction firm oversees construction projects for a variety of industrial sectors worldwide including manufacturing facilities, refineries, pharmaceutical facilities, healthcare buildings, power plants and telecommunications. The company’s fourth-quarter earnings have more than tripled, lifted by strong demand from the oil and gas industry. The analyst community has also forecast earnings of $1.18 per share on sales of $4.58 billion. This company just posted a whopping 139% earnings surprise!
• Who would have thought robotic healthcare would be the wave of the future? Well, the future just arrived. This software company just developed the da Vinci Surgical System, which allows doctors to perform robotically aided surgery from a remote console. This growing global conglomerate sells its products in Asia, Australia, Europe and North America through a direct sales force as well as independent distributors.
• The consolidation in the steel business remains relentless, and this company is one of the biggest buyers! As one of Russia’s largest manufacturers of specialty steels and alloy products used in the automotive, construction, chemical and rail industries, its mining operations in Russia and Kazakhstan produces all of the coal, iron ore and nickel it needs. The stock is benefiting from high steel prices and should continue to post record sales and earnings.
• First the human genome…now the rice genome? This company is tied with Bayer Crop-Science as the world’s largest agrochemical company. It produces crop protection products (insecticides, herbicides, fungicides), field crop seeds (soybeans), vegetable seeds (corn, beans, tomatoes) and flowers, and recently partnered with Myriad Genetics to map the rice genome, which could make rice crops more resistant to disease. In 2007, it posted a 75% rise in earnings boosted by strong demand as well as high commodity prices. This Swiss company said net profit rose to $1.11 billion compared with $634 million in the same period a year earlier. This beat analysts’ estimates of around $1 billion. Sales also saw an increase, rising 15% last year to $9.24 billion.
There’s no doubt about it: Right now is the best time to be fully invested in the stock market. However, As the U.S. dollar gets weaker and weaker, multinational companies will continue to prosper from their overseas operations and positive currency exchange rates. This is exactly why our Blue Chip Growth stocks continue to post stunning sales–no matter what the market gods throw at us.
To get the names of these 5 stocks, sign up today for your risk-free trial subscription to Blue Chip Growth! I dedicate half of my May issue to analyzing buy prices, earnings data and analysts expectations just for these five stocks! That’s how excited I am about their performance! Sign up for your free trial subscription to Blue Chip Growth right here, and get in on action today!