This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Blue-Chip Stock Buys to Beat the S&P

Sigma-Aldrich

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Chemical manufacturer Sigma-Aldrich (SIAL - Get Report) is one of the biggest names supplying chemicals and consumable products to scientific laboratories across the world. From pharmaceutical and biotech labs to academic labs to R&D testbeds, SIAL boasts more than 100,000 accounts.

Short sellers are piling into the stock right now. A short interest ratio of 12.3 means that it would take two and a half weeks of buying pressure for short sellers to cover their positions right now.

Sigma has built an attractive business selling chemicals and research materials. Because the firm's products are typically a tiny fraction of research budgets, the folks signing the checks on those 100,000 accounts tend to be less concerned with price than quality. As a result, Sigma earns large net profit margins on its sales, dumping close to 20% of each dollar in revenues straight to the bottom line.

Investors should also like the fact that only a third of Sigma's sales come from the U.S. With more and more research facilities opening up abroad, Sigma's ability to capture sales in key emerging markets is critical to its ability to grow.

Sigma-Aldrich boasts a cash position that almost completely offsets its debt load right now, attractive positioning that gives SIAL the wherewithal to continue pushing its distribution network into emerging markets where science spending is a priority. Investors should keep an eye on this stock's Oct. 23 earnings call.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GPC $83.71 0.22%
LH $119.61 -0.18%
SIAL $139.55 -0.07%
UAL $57.12 7.05%
SYY $39.91 -0.97%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs