This Day On The Street
Continue to site
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

Quick Take: Buy These 4 'Purple-Chip' Stocks

NEW YORK ( TheStreet) -- We've all heard of blue-chip stocks, but what about "purple-chip" stocks? John Schwinghamer, author of "Purple Chips," explained the concept to TheStreet's Gregg Greenberg.

Purple-chips, according to Schwinghamer, are the royalty of blue-chip stocks. Based on their increasing and consistent earnings power, they make better investments than your average blue-chip company.

C.H. Robinson (CHRW) was the first on his list. Although the company may not seem very exciting to some, its ability to hold up in a sluggish economy proves valuable.

He explained that during the financial crisis in 2008, the company was able to not only keep earnings per share afloat, but actually increase it through the troubling times.

Oracle (ORCL) also made the list, despite its recent earnings hiccups. Despite the short-term turmoil, the company has a long-lasting ability to provide solid earnings results, Schwinghamer said.

While we might not see the behind-the-scenes action between merchants and credit-card companies, that doesn't mean there isn't there a business there. That environment is exactly where Global Payments (GPN) thrives, and it should only continue grow as we keep moving towards a cashless society, he added.

With the harsh selloff in April, Schwinghamer believes Cognizant Technology Solutions (CTSH) is a buy based on valuation. The company is a consistent earnings grower and when valuations get this low, it usually indicates that all of the bad news is baked in, making upside surprises more likely.

When looking for his purple-chip selection, Schwinghamer said he searches for stocks with a market cap of at least $1 billion, seven years of earnings growth, and relatively "predictable" earnings results.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs