Over the past year, the performance of T. Rowe Price Blue Chip Growth (TRBCX has underscored why it pays to sit tight when a fund with a superior long-term record hits a speed bump. In 2016, as investors turned away from shares of the fast-growing, large-capitalization stocks that Blue Chip targets in favor of more-undervalued fare, the fund lagged the stock market dramatically. Stocks that had previously buoyed the fund, such as Amazon.com and Facebook, were suddenly a drag, says manager Larry Puglia. And energy and utility stockssectors that Blue Chip tends to ignoreperformed exceptionally well.
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But these kinds of style shifts dont last forever. Large-cap growth stocks, led by the technology sector, are rebounding this year, and Blue Chip is benefiting. In the first three months of 2017, the fund returned 10.4%, beating Standard & Poors 500-stock index by 4.3 percentage points. Over the past 12 months, Blue Chip, a member of the Kiplinger 25, outpaced the index by nearly a full percentage point. (Prices and returns are through March 31)
Top Blue Chip Stocks To Invest In Right Now: Cerner Corporation(CERN)
- [By Ben Levisohn]
Cerner (CERN) soared to the top of the S&P 500 today after thehealth care information technology company reported better-than-expected earnings and revenue.
Cernergained 7.8% to $64.75 at 5:03 p.m. today, while the S&P 500 declined 0.2% to 2,384.20.
Canaccord Genuity’s Richard Close and Brian Hoffman contend Cerner may be “rediscovered its mojo.” They explain:
We reiterate our BUY rating and raise our PT to $66 (was $59) as the company finally
appears to have provided quarterly and annual targets that it can meet. Possibly more important, analyst expectations sit near the mid-point of guidance, portending upside potential. The outlook appears solid as the company (1) rebuilds a track record of delivering on expectations, (2) reaffirmed confidence in 2017 bookings growth, and (3) has a strengthened pipeline for ITWorks and revenue cycle. CERN may have rediscovered its mojo.
Cerner’s market capitalization rose to $21.4 billion today from $19.8 billion yesterday.
- [By ]
Cerner Corp (Nasdaq: CERN) is the largest pure-play health care IT (HCIT) company in the world with clients in 30 countries and a footprint at 70 of the top 100 global health systems by patient revenue. The company is the market leader in health systems outside the United States with 28% of an otherwise fragmented market.
- [By Ben Levisohn]
Cerner (CERN) tumbled to the bottom of the S&P 500 today after meetings earnings forecasts but offering below-consensus guidance.
Agence France-Presse/Getty Images
Cerner dropped 4.4% to $51.50 today, while the S&P 500 rose 0.4% to 2,316.10.
SunTrust Robinson Humphrey’s Sandy Draper and team contend that “most of the bad news is already priced in.” They explain:
Although we expect this news to weigh on the stock…we think the market has remained cautious on CERN shares heading into the 4Q16 print given the uneven execution throughout 2016 and the post-election regulatory uncertainty that has broadly weighed on the HCIT space as a whole. We observe that CERN shares closed about 3% below the level they traded at this time last year, while the S&P was up over 21% in that time. The muted 12-month performance in the stock suggests the market rightly anticipated unattractive year-end results and 2017 guidance, which suggests to us that downside to CERN shares should be limited.
Cerner’s market capitalization fell to $17.5 billion today from $18.3 billion yesterday.
Barron’s Vito Racanelli recommended shares of Cerner on March 16, 2016, when the stock traded at $51.46.
Top Blue Chip Stocks To Invest In Right Now: DepoMed Inc.(DEPO)
- [By Lisa Levin]
Shares of Depomed Inc (NASDAQ: DEPO) got a boost, shooting up 13 percent to $23.90. Depomed is preparing to put itself up for sale, following calls from activist investor Starboard Value LP to explore such a move, just a year after it fought off a hostile acquisition bid, people familiar with the matter told Reuters.
Top Blue Chip Stocks To Invest In Right Now: EnLink Midstream Partners, LP(ENLK)
- [By WWW.MONEYSHOW.COM]
EnLink Midstream Partners (ENLK) is sponsored by independent oil and gas exploration giant Devon Energy (DVN), the owner of this acreage.
These basins offer superior economics and EnLink’s close relationship with Devon provides leveraged exposure to the upstream operator’s accelerating activity in these plays.
Top Blue Chip Stocks To Invest In Right Now: Frontline Ltd.(FRO)
- [By Lisa Levin]
Wednesday afternoon, the energy shares surged 1.23 percent. Meanwhile, top gainers in the sector included Frontline Ltd. (NYSE: FRO), up 5 percent, and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO), up 6 percent.
- [By Rich Smith]
So what is it that’s supporting DHT’s stock price in the face of sliding shipping rates for crude oil, retreating revenue, and plunging profits? Well, for one thing, rival tanker companyFrontline (NYSE:FRO) made an unsolicited bid to acquire DHT last week, offering to pay $475 million for the company. (DHT is currently valued at $460 million.)
- [By Shanthi Rexaline]
Frontline Ltd. (NYSE: FRO) is projected to post a loss in the second quarter, translating to a zero dividend, Credit Suisse said in a Tuesday note. Notwithstanding the negative opinion, the shares of the company were up in reaction to the possibility of a deal being struck.
Top Blue Chip Stocks To Invest In Right Now: Protective Life Corporation(PL)
- [By David Sterman]
My favorite insurers: AIG (NYSE: AIG) (which I discussed a few months ago), Protective Life (NYSE: PL) and Reinsurance Group of America (NYSE: RGA).