3 Blue-Chip Stocks to Buy for 100% Returns in the Next 24 Months

Strong fundamentals, steady growth, and robust cash flow visibility makes these ideas attractive

• These are the fundamentally strong blue-chip stocks to buy for a big rally within the next 24 months on the back of growth and cash flow upside.
• Barrick Gold (GOLD): Higher realized gold price should translate into robust cash flows and healthy dividend growth is likely.
• Vale (VALE): Production growth for iron ore, copper, and nickel coupled with visibility for higher adjusted EBITDA.
• Target Corporation (TGT): As the company returns to growth along with the possibility of margin expansion, the stock will trend higher.

강력한 기본 요소, 꾸준한 성장, 견고한 현금 흐름 가시성으로 인해 이러한 아이디어는 매력적입니다.
다음 24개월 내에 성장과 현금 흐름 상승에 힘입어 큰 랠리를 위해 매수할 근본적으로 강력한 블루칩 주식입니다.
Barrick Gold(GOLD): 실현된 금 가격이 상승하면 견고한 현금 흐름과 건강한 배당금 성장이 나타날 가능성이 큽니다.
Vale(VALE): 철광석, 구리, 니켈의 생산 증가와 더 높은 조정 EBITDA에 대한 가시성이 결합되었습니다.
Target Corporation(TGT): 회사가 성장으로 돌아오고 마진 확대 가능성이 있으면 주가가 상승할 것입니다.

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The objective of healthy returns in a quick time is generally achieved by exposure to growth stocks. However, there are opportunities where blue-chip stocks can surge higher from undervalued levels. The advantage is that investors can have a low-beta portfolio that delivers returns that can potentially match the returns of a high-beta portfolio. The focus of this column is on blue-chip stocks that are likely to double within the next 24 months.

It’s not uncommon to see blue-chip stocks trading at a valuation gap. It can be on the back of industry headwinds or temporary growth concerns. However, it’s always a good buying opportunity if the company has strong fundamentals and robust cash flow visibility. The comeback from oversold levels can be quick and rewarding for an investor.

I have focused on blue-chip stocks that are likely to benefit from impending rate cuts and are undervalued. With expansionary policies, these stock ideas can surge higher within the next 12 to 24 months.

 

Barrick Gold (GOLD)

While gold has trended higher, Barrick Gold (NYSE:GOLD) stock has remained sideways in the last 12 months. I expect a breakout rally for this blue-chip gold miner as the precious metal remains in an uptrend. My view is underscored by the point that GOLD stock trades at an attractive forward P/E of 14.3.

With the possibility of multiple rate cuts, Citi believes that gold is likely to trade at $3,000 an ounce in the next 6 to 18 months. If this target holds true, Barrick Gold will be positioned for healthy revenue and cash flow upside. Additionally, robust dividend growth is likely for a stock that already has a dividend yield of 2.3%.

It’s worth noting that Barrick Gold reported an operating cash flow of $760 million for Q1 2024. With the likelihood of higher realized prices, the annual OCF potential is in the range of $4 to $5 billion. This will provide Barrick with high flexibility to make aggressive exploration investments.

 

Vale (VALE)

If I had to pick one industrial commodity stock, I would consider Vale (NYSE:VALE) from the perspective of valuations. The blue-chip stock has been in a sharp downturned, but the selling is overdone and the company continues to deliver healthy numbers.

It’s worth noting that macroeconomic challenges have impacted sentiments for industrial commodities. However, with rate cuts coming and the possibility of fiscal stimulus in many countries, I expect commodities to trend higher.

For Q2 2024, Vale reported a steady increase in iron ore production and sales. The commodity major also has projects underway to increase capacity by 50mt by 2026. At the same time, copper and nickel production diversifies the company’s portfolio of assets.

Even with a relatively soft commodity price, Vale reported adjusted EBITDA of $4 billion for Q2 2024. If commodity trends are higher and production upside targets are achieved, Vale is likely to report an EBITDA of more than $20 billion. This would imply healthy operating and free cash flows for dividends coupled with capital investments.

빠른 시간 내에 건전한 수익률이라는 목표는 일반적으로 성장주에 대한 노출을 통해 달성됩니다. 그러나 블루칩 주식이 저평가된 수준에서 급등할 수 있는 기회가 있습니다. 장점은 투자자가 잠재적으로 고베타 포트폴리오의 수익률과 맞먹는 수익을 제공하는 저베타 포트폴리오를 가질 수 있다는 것입니다. 이 칼럼의 초점은 향후 24개월 내에 두 배가 될 가능성이 있는 블루칩 주식에 맞춰져 있습니다.
블루칩 주식이 평가 갭에서 거래되는 것을 보는 것은 드문 일이 아닙니다. 이는 산업의 역풍이나 일시적인 성장 우려의 결과일 수 있습니다. 그러나 회사에 강력한 기본 요소와 견고한 현금 흐름 가시성이 있는 경우 항상 좋은 매수 기회입니다. 과매도 수준에서의 회복은 투자자에게 빠르고 보람 있는 일이 될 수 있습니다.
저는 임박한 금리 인하로 인해 혜택을 볼 가능성이 높고 저평가된 블루칩 주식에 초점을 맞추었습니다. 확장적 정책으로 이러한 주식 아이디어는 향후 12~24개월 내에 급등할 수 있습니다.

Barrick Gold(GOLD)
금은 상승 추세를 보였지만, Barrick Gold(NYSE:GOLD) 주식은 지난 12개월 동안 횡보세를 유지했습니다. 귀금속이 상승 추세를 유지하고 있기 때문에 이 대형 금광업체의 돌파적 랠리가 예상됩니다. GOLD 주식이 매력적인 전망 P/E 14.3으로 거래된다는 점에서 제 견해가 강조됩니다.
여러 차례의 금리 인하 가능성으로 인해 Citi는 향후 6~18개월 동안 금이 온스당 3,000달러에 거래될 가능성이 높다고 생각합니다. 이 목표가 유지된다면 Barrick Gold는 건전한 매출과 현금 흐름 상승을 위해 자리 잡을 것입니다. 또한 이미 배당 수익률이 2.3%인 주식의 경우 강력한 배당 성장이 예상됩니다.
Barrick Gold가 2024년 1분기에 7억 6,000만 달러의 영업 현금 흐름을 보고했다는 점에 주목할 가치가 있습니다. 실현 가격이 높아질 가능성이 높으므로 연간 OCF 잠재력은 40억~50억 달러 범위에 있습니다. 이를 통해 Barrick은 공격적인 탐사 투자를 할 수 있는 높은 유연성을 확보할 수 있습니다.

Vale(VALE)
산업용 상품 주식을 하나만 고르라면 Vale(NYSE:VALE)을 가치 평가 측면에서 고려할 것입니다. 이 대형 주식은 급락했지만, 매도가 지나치고 회사는 계속해서 건강한 수치를 제공하고 있습니다.
거시경제적 어려움이 산업 상품에 대한 감정에 영향을 미쳤다는 점은 주목할 만합니다. 그러나 금리 인하가 다가오고 많은 국가에서 재정 자극책이 시행될 가능성이 있으므로 상품이 상승할 것으로 예상합니다.
2024년 2분기 Vale은 철광석 생산 및 판매가 꾸준히 증가했다고 보고했습니다. 이 상품 주요 기업은 또한 2026년까지 생산 능력을 50mt 늘리는 프로젝트를 진행 중입니다. 동시에 구리와 니켈 생산은 회사의 자산 포트폴리오를 다각화합니다.
비교적 부드러운 상품 가격에도 불구하고 Vale은 2024년 2분기에 40억 달러의 조정된 EBITDA를 보고했습니다. 상품 추세가 더 높고 생산 증가 목표가 달성되면 Vale은 200억 달러 이상의 EBITDA를 보고할 가능성이 높습니다. 이는 자본 투자와 더불어 배당금에 대한 건강한 운영 및 자유 현금 흐름을 의미합니다.

Target Corporation (TGT)

Among retail blue-chip stocks, Target Corporation (NYSE:TGT) looks undervalued at a forward P/E of 14.5. While Walmart (NYSE:WMT) stock has trended higher by 30% for the year-to-date, TGT stock has declined by 5%.

I however believe that a strong reversal is impending and the stock will surge in the next 12 to 24 months. It’s worth noting that with rate cuts on the cards, consumption spending is likely to accelerate. This is one reason to be bullish on Target.

Additionally, the retailer has guided for better numbers in the coming quarters. For Q1 2024, Target reported a comparable sales decline of 3.7%. However, for the full year, the company has guided for 0 to 2% increase in comparable sales.

At the same time, operational efficiency is in focus and is likely to translate into EBITDA margin improvement. The launch of products for the company’s owned brand is also likely to support margin expansion.

Target Corporation(TGT)
소매 대형주 중에서 Target Corporation(NYSE:TGT)은 14.5의 전망 P/E로 저평가된 것으로 보입니다. Walmart(NYSE:WMT) 주식은 연초 이래 30% 상승 추세를 보였지만 TGT 주식은 5% 하락했습니다.
그러나 저는 강력한 반전이 임박했으며 주가는 향후 12~24개월 동안 급등할 것이라고 생각합니다. 요금 인하가 예정되어 있으므로 소비 지출이 가속화될 가능성이 높다는 점에 주목할 가치가 있습니다. 이것이 Target에 대해 강세를 보이는 한 가지 이유입니다.
또한 이 소매업체는 향후 분기에 더 나은 수치를 안내했습니다. Target은 2024년 1분기에 비교 가능 매출이 3.7% 감소했다고 보고했습니다. 그러나 회사는 연간 비교 가능 매출이 0~2% 증가할 것으로 안내했습니다.
동시에 운영 효율성이 초점이며 EBITDA 마진 개선으로 이어질 가능성이 높습니다. 회사 자체 브랜드의 제품 출시도 마진 확대에 도움이 될 가능성이 높습니다.

https://investorplace.com/2024/08/3-blue-chip-stocks-to-buy-for-100-returns-in-the-next-24-months/

3 Blue-Chip Stocks to Buy for 100% Returns in the Next 24 Months