5 Safe Blue Chip Stocks to Buy in June

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In this article, we discuss the 5 safe blue chip stocks to buy in June. If you want to read our detailed analysis of the current market situation and blue chip stocks, go directly to 10 Safe Blue Chip Stocks to Buy in June.

5. American Express Company (NYSE:AXP)

Number of Hedge Fund Holders: 69

Share Price (as of June 9): $160.98

American Express Company (NYSE:AXP) deals in the provision of credit cards, payment solutions, and travel-related services worldwide. In its Q1 results, the firm disclosed EPS of $2.73, exceeding analysts’ forecasts by $0.26. Revenue of $11.74 billion for the quarter outperformed Street estimates by roughly $76 million and grew 29.47% in comparison to the same period over last year.

Edward Jones analyst Kyle Sanders on June 6 upgraded American Express Company (NYSE:AXP) to ‘Buy’ from ‘Hold’. He noted that the firm’s “loyal base” of affluent customers will be less affected by the current inflationary environment, enabling AXP to post strong spending trends relative to its credit card peers. Sanders also sees the firm highlighting “robust” new account growth, on the back of its efforts to strengthen its product offerings and attract younger customers.

A detailed study of the 912 hedge funds in the first quarter database of Insider Monkey showed that 69 hedge funds were long American Express Company (NYSE:AXP), with collective stakes worth $33.18 billion. This shows a positive trend from the previous quarter where 64 hedge funds were bullish on the company shares. Berkshire Hathaway held a $28.35 billion position in American Express Company (NYSE:AXP) during the first quarter, which represented 7.79% of Warren Buffett’s entire portfolio and established him as the firm’s largest shareholder.

Here is what ClearBridge Investments had to say about the recent performance of American Express Company (NYSE:AXP) in its Q2 2021 investor letter:

“In financials, American Express has done an excellent job demonstrating the resiliency of its franchise in the midst of a global pandemic that drove a 60% decline in its core travel and entertainment business. The company’s spend-centric model has been helped by fiscal stimulus ensuring a flush consumer, while management continues to execute well by adding millions of new consumer and small and medium business accounts, which should benefit the franchise over the medium to long term. We remain optimistic regarding the company’s prospects as travel and entertainment activity rebounds, adding to our position in the quarter.”


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