Hello everyone. Welcome to the Hot Performers show here on Kalkine TV. I am Sage and today
we will be talking about 6 ASX blue chip stocks that investor can eye for Christmas.
Blue-chip stocks belong to the companies with a large market cap and excellent reputation.
Investors majorly look for reliable and safe investment when they choose blue
chip stocks and thus, they tend to go after established companies that are financially
resilient against market fluctuations. This festive season, with pandemic still lasting,
blue-chip stocks seem to be a safe option to look at for investment.
Here are few blue-chip stocks that investors can watch out for in this festive season.
At number one, we have Telstra Corporation which is an ASX listed telecommunications carrier
that provides telecom and other information services. Over the financial year 2021,
Telstra provided its shareholders with an interim dividend and a final dividend, each worth 5 cents.
It also provided 2 special dividends at 3 cents each. The telco’s new T25 Growth Strategy aims
to see it reporting a compound annual growth rate of mid-single digits for its EBITDA. It also aims
to see underlying earnings per share reach the mid-teens between now and financial year 2025.
Telstra is trading at AU$3.77 on the ASX today, with a market capitalization of AU$45.5 billion.
Next blue-chip stock on the list is Woodside Petroleum.
It is an ASX listed oil and gas exploration firm in Australia. According to the company’s half
yearly results for financial year 2021, its net profit after tax is up 108% from the prior year.
Company’s free cash flow also increased by 18%. In August, the company announced
all stock merger with BHP Group to create a global energy company. Woodside Petroleum is
trading at AU$24.43 on the ASX today, with a market capitalization of AU$ 24.20 billion.
Next stock for investors is Santos. ASX listed Santos is a gas and petroleum exploration firm
in Australia. As per the company’s half year results for financial year 2021 its free
cash flow is up 33% from prior year. Santos also reported an underlying profit
up 50% from financial year 2020. Recently, company’s boss flagged that the international
energy crisis might soon reach Australia. He said that if gas prices don’t ease, Australia’s
contract tariffs will be pushed higher. As a result, the pressure on manufacturers dependent
on LNG might increase. Gallagher reportedly blames the surging LNG price on underinvestment spurred
by environmental, social, and governance measures, as well as drops in the price of oil. Santos is
trading at AU$7.29 on the ASX today, with a market capitalization of AU$15.37billion.
Next on the list is South32. It is an Australia based diversified mining and metals company.
The company launched its plan to be more environmentally and socially sustainable.
The company is reshaping its portfolio to take advantage of the low
carbon future. It’s increasing its exposure to base and precious metals, aluminum,
and manganese. Additionally, South32 is planning to halve its operational carbon emissions by 2035
compared to its financial year 2021 baseline. South32 is trading at AU$3.84 on the ASX today,
with a market capitalization of AU$18.09 billion.
Next stock is SEEK. Who is an Australian based operator of online employment classifieds,
education, and training. As per its financial year 2021 full year results the company reported record
EBITDA is up 15% from the prior corresponding period. SEEK’s revenue also increased by
1% through continued operations. Under its financial year 2022 guidance, SEEK expects NPAT
to be in the range of AU$190 million to AU$200 million. It is implementing a new corporate
structure to enable greater focus on the growth opportunities within its core online employment
businesses whilst retaining economic exposure to the SEEK Growth Fund and Zhaopin. SEEK’s is
trading at AU$33.01 on the ASX today, with a market capitalization of AU$11.47 billion.
Last but not the least, we have BHP Group. It is an Australia based global resource company.
The company delivered outstanding financial results in financial year 2021. During the year,
the company’s free cash flow is up 140% from the prior year. BHP maintained its EBITDA margin by
64% and the underlying EBITDA is up 69%. BHP’s profit from operations also increased by 80%.
The mining giant reported a year-on-year decline in copper and iron ore production for its
latest financial quarter. Copper production dropped 9% in the September-ending quarter
against the same period a year ago, while iron ore production fell 4% from September 2020.
BHP is trading at AU$38.83 on the ASX today, with a market capitalization of AU$113.26 billion.
Well, that’s all for now. We will be back again with the exclusive Hot Performers show.
Till then, keep watching Kalkine TV for the latest market updates and
related insights. I am James Preston, signing off.