Top 10 Blue Chip Companies To Watch For 2014

Wall Street seemed happy to get the second quarter -- especially the month of June -- behind it on Monday. The Dow Jones Industrial Average (DJINDICES: ^DJI  ) was up more than 150 points for much of the day after manufacturing data from the U.S. and Japan indicated that global industry is rebounding. Bullish data alone often drives equities higher, but investors anxiously awaiting the beginning of earnings season next week may also contribute to some speculative gains this week. By day's end, the Dow had risen 65 points, or 0.4%, ending at 14,974.

The biggest blue chip beneficiary of Monday's manufacturing rally was United Technologies (NYSE: UTX  ) , which added nearly 2%. Sentiment from Japan's biggest industrials shifted from largely negative to mildly optimistic in June, and that important swing was mirrored in the U.S., where manufacturing activity swung from contraction to expansion.

Property and casualty insurance giant Travelers (NYSE: TRV  ) ended as the second-biggest Dow gainer, tacking on 1.5%. There wasn't any major catalyst behind today's gains, but shares sure don't look too bad at these levels. The stock seems cheap: It trades at just over 10 times forward earnings, and pays a 2.5% dividend -- the same yield as 10-year Treasury notes.

Top Heal Care Companies To Watch In Right Now: Apple Inc.(AAPL)

Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.

Advisors' Opinion:

• [By Dan Caplinger]

  Getty Images Holiday shopping season is in full swing, and smartphones, tablets, and other electronic devices once again top many shoppers' gift lists. Given how expensive many popular gadgets have become, one big question many shoppers are facing is whether or not to tack on an extended warranty to protect themselves should their electronic devices come to harm. They're Lining Up to Sell You Protection Retailers know that the best time to get you to pay to protect expensive items is while you are making a big-ticket purchase. For years, Best Buy (BBY), Sears (SHLD), Walmart (WMT), and other major retailers have sold extended warranty protection on high-priced electronics like computers and TVs. That coverage can be pricey, with Walmart having recently charged $65 for a two-year TV service plan and Best Buy offering two-year coverage on an $800 TV for $99.99 and five-year coverage for $179.99 . Appliance warranties can also be expensive, with Sears recently charging $280 for a three-year protection plan on a $950 refrigerator. Protection plans for smartphones and tablets are also popular. Apple (AAPL) offers its AppleCare for its devices. Coverage to extend an iPhone's warranty and other protections for two years will run you $99. Other companies have sought to offer more comprehensive coverage for electronic devices, with Protect Your Bubble offering phone and tablet insurance for $7.99 to $9.99 a month that covers not only mechanical problems but also common mishaps like damage from drops and liquid spills, as well as theft or loss. Many Items Have Built-In Protection What many consumers don't realize is how much protection against common problems they already have, even without buying extra. Nearly every purchase comes with at least limited warranty protection for mechanical defects. According to Consumer Reports, most issues that would qualify for coverage under extended warranties tend to happen during the initial warranty period, making the extended co

• [By Daniel Sparks]

  In the video below, Fool contributor Daniel Sparks discusses the importance of these ratings and he suggests one way investors can identify positive and negative moat trends. To illustrate, Daniel takes a look at Apple (NASDAQ: AAPL  ) , Whole Foods (NASDAQ: WFM  ) , and Nokia (NYSE: NOK  ) .

• [By Alex Dumortier, CFA]

  Apple is back on top
  As the Federal Reserve's monetary policy meeting got under way today, technology stocks led the broad market -- by a wide margin -- as the S&P 500's information technology sector increased 1.2%. (The runner-up, telecommunication services, managed only a 0.4% return.) Information technology was also the best-performing sector yesterday. The largest driver of those gains were shares of Apple (NASDAQ: AAPL  ) , which were up 2.9% today, for a 6.1% return on the week thus far. That two-day return has added $32.3 billion to the company's market capitalization, enough to wrest the title of most valuable company in the world back from ExxonMobil.

Top 10 Blue Chip Companies To Watch For 2014: McDonald's Corporation(MCD)

McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.

Advisors' Opinion:

• [By Kyle Spencer]

  While the USDA's conclusion of 5 weeks maximum reduced consumption will certainly be a relief to investors with exposure to the Asian poultry market -- namely, Yum, Tyson (TSN), and McDonald's (MCD) investors -- I think that relying too closely on the Italian consumers' experience with H5N1 to interpret the reaction of Chinese consumers to H7N9 might potentially be a disastrous assumption.

• [By Susan J. Aluise]

  My biggest worry about Chipotle stock right now is that its valuation is too hot to handle. This is a stock that is trading at more than 34 times forward earnings; compare that to restaurant rivals like McDonalds (MCD) at 15.5 and Taco Bell and KFC parent Yum Brands (YUM) at 18.5. Even fast-casual peer Panera has a comparably cheap forward P/E of 20.4.

• [By Dividend Growth Investor]

  After all, a company like McDonald�� (MCD) would keep being in the restaurant business for as long as possible. Its business model of delivering a consistent customer experience on a global scale should not change much. Its expansion might come not just by opening new stores internationally however, but by renovating existing locations, innovations in its menu and attracting new customers from a young age. These megatrends do not happen overnight, and would likely take years to develop. Another example includes Wal-Mart (WMT), which is the world�� largest retailer. While the company has largely saturated US market, it could grow substantially abroad. In addition, it could also grow organically by making stores more appealing to consumers. At the same time, if investors use the company�� product or service in their everyday lives, they might gain an insider�� look at things, even before the annual reports are out.

Top 10 Blue Chip Companies To Watch For 2014: International Business Machines Corporation(IBM)

International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.

Advisors' Opinion:

• [By Dan Caplinger]

  IBM (NYSE: IBM  ) , $12 billion
  For IBM, buybacks are a very conscious piece of an overall corporate strategy. A few years ago, the tech giant set a goal of reaching earnings per share of $20 by 2015. To reach that goal, IBM clearly needs to boost its net income. But it is also very deliberately buying back stock to reduce its share count, making it that much easier to reach its goal. In fact, over the years, the company has borrowed money from time to time to reduce share count, and with low borrowing costs now, that strategy could be instrumental in getting IBM to $20 per share in earnings in the next two years.

• [By Mani]

  [Related -International Business Machines Corp. (IBM): More Potholes In The Road To $20 In 2015]

  Global Technology Services unit revenues decreased 4 percent to $9.9 billion. Global Business Services segment revenues were up 1 percent to $4.7 billion. The estimated services backlog at Dec. 31 was $143 billion, up 2 percent.

Top 10 Blue Chip Companies To Watch For 2014: Colgate-Palmolive Company(CL)

Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:

• [By Douglas A. McIntyre]

  Some traditional brand powerhouses have lost ground in the Top 100 since 2009. These include BMW, FedEx Corp. (NYSE: FDX) and Colgate-Palmolive Co. (NYSE: CL).

• [By Dan Caplinger]

  Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL  ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.

Top 10 Blue Chip Companies To Watch For 2014: Philip Morris International Inc(PM)

Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.

Advisors' Opinion:

• [By Monica Gerson]

  Philip Morris International (NYSE: PM) is estimated to report its Q1 earnings at $1.16 per share on revenue of $7.01 billion.

  UnitedHealth Group (NYSE: UNH) is projected to report its Q1 earnings at $1.09 per share on revenue of $31.99 billion.

• [By Dan Caplinger]

  Altria has topped the tobacco industry for decades, with its leading Marlboro brand retaining its popularity around the world. But with the company having spun off its Philip Morris International (NYSE: PM  ) division, Altria now has to rely on the U.S. market, with its unique challenges and risks. Let's take an early look at what's been happening with Altria over the past quarter and what we're likely to see in its quarterly report.

Top 10 Blue Chip Companies To Watch For 2014: Visa Inc.(V)

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.

Advisors' Opinion:

• [By Chris Hill]

  Shares of Visa (NYSE: V  ) rose to an all-time high on Thursday after the company reported stronger-than-expected second-quarter earnings. Should investors buy Visa, or is MasterCard (NYSE: MA  ) the better bet? In this installment of MarketFoolery, our analysts discuss Visa, MasterCard, PayPal, and the future of the payments industry.

• [By Amanda Alix]

  A long-standing dispute between credit card issuers Visa (NYSE: V  ) and MasterCard (NYSE: MA  ) and the businesses that accept consumer payments via those instruments is heating up again, as a flurry of lawsuits filed on both sides over a prior settlement regarding interchange fees jump-start the hostilities all over again.

• [By Ben Levisohn]

  Last September, the folks who manage the Dow Jones Industrial average decided it was time to add some new blood to the venerable blue-chip index.� So in came Goldman Sachs (GS), Visa (V) and Nike (NKE), and out went Bank of America (BAC),�Alcoa (AA) and Hewlett-Packard�(HPQ).

• [By Dan Caplinger]

  Yet the challenge AmEx has faced for a long time is how to keep distinguishing itself in an industry that's increasingly dominated by leading payment-processors Visa (NYSE: V  ) and MasterCard (NYSE: MA  ) . Both Visa and MasterCard have essentially used their payment networks as toll roads, luring third-party issuing banks to market their cards to customers and profiting from transaction volume, and they've issued 10 to 20 times the number of cards that AmEx has. By contrast, AmEx has adopted a much more vertically integrated business model, wherein AmEx maintains a much deeper connection to its cardholders, taking on credit risk but also reaping the rewards when it makes smart decisions about extending credit.

Top 10 Blue Chip Companies To Watch For 2014: Chevron Corporation(CVX)

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.

Advisors' Opinion:

• [By Dividends4Life]

  Linked here is a detailed quantitative analysis of Chevron Corporation (CVX). Below are some highlights from the above linked analysis: Company Description: Chevron Corporation is a global integrated oil company (formerly ChevronTexaco) has interests in exploration, production, refining and marketing, and petrochemicals.

• [By Dan Caplinger]

  Before you conclude that a stock is fundamentally cheap based on its P/E ratio, though, you need to look not just at its current earnings but also at its future prospects. Often, especially with cyclical stocks, you'll find that P/E gives you the exact opposite message that you'd expect. Consider these examples:

  In the energy sector, oil giants ExxonMobil (NYSE: XOM  ) and Chevron (NYSE: CVX  ) both have attractive P/E ratios of around 10. Yet looking forward, analysts don't expect either company to produce a lot of profit growth, as both companies have had to work extremely hard to avoid massive output declines stemming from falling production levels from their respective oil-field assets. As long as Exxon and Chevron can acquire new properties with lucrative prospects, they'll be able to keep revenue up, but it's far from certain whether they'll succeed in finding new discoveries. The cyclical trend is even more apparent in the refining industry. Marathon Petroleum (NYSE: MPC  ) and Phillips 66 (NYSE: PSX  ) have made huge share-price advances over the past year, as extremely wide spreads between crude oil prices in the U.S. and abroad have led to unusually high profits for refined-product sales. Now, though, analysts have increasingly concluded that a combination of rising costs, greater regulation, and narrowing spreads will lead to falling profits, making current P/Es based on trailing earnings artificially low if they turn out to be right. You can find similar trends in other industries as well. Even in the traditionally high-growth tech industry, many sector giants have seen their P/E ratios plunge as earnings growth has slowed to a standstill. Dell (NASDAQ: DELL  ) is one of the most notable of these companies, with explosive growth during the 1990s having given way more recently to the PC bust and concerns about the viability of its business model going forward. Its share price has fall
• [By Jonas Elmerraji]

  Surprisingly, one of the names that's correlating the highest with the S&P 500 right now is oil and gas supermajor Chevron (CVX). Just like the S&P, Chevron is trading in a very well-defined trend channel. The key difference is that the Chevron trade is further along; this stock is bouncing off of trendline support this week. That means it's time to be a buyer.

  Commodities and materials stocks are seeing some buoyancy this week, but Chevron's price action is different -- it's been more sustained over the course of 2013. This stock's proximity to trendline support right now makes it the best-in-breed oil name in my view. As geopolitical risks propel oil prices, the real story at CVX is the fact that support is just a few points away. That makes Chevron a great setup from a risk management perspective.

  Speaking of risk management, if you decide to jump into shares here, I'd recommend keeping a protective stopprotective stop just above the 200-day moving average.