This company remains a conservative top Wall Street energy pick. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.
Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.
Exxon announced estimated first-quarter earnings of $4.7 billion, or $1.09 per share assuming dilution, compared with $4.0 billion a year earlier. Cash flow from operations and asset sales was $10 billion, including proceeds associated with asset sales of $1.4 billion. Note that Exxon has one of the highest paid American CEOs.
With Americans hitting the road in record numbers for the Fourth of July holiday and perhaps the start of their vacations, you can bet that plenty of gasoline will be sold to get everybody to their destinations, and prices across the nation remain very reasonable this summer.
Exxon has raised the per-share dividend by a nickel to $0.82, which is a solid 4.54% dividend. The $100 Merrill price objective is well above the $85.08 consensus. The stock closed most recently at $76.56.
This top grocer does almost all of its business in the United States. Kroger Co. (NYSE: KR) is the second largest U.S. food supermarket retailer and generates $120 billion in annual sales. Kroger operates roughly 2,800 supermarkets throughout 35 states and under two dozen banners. Kroger also sells fuel at 1,450 supermarket fuel centers and operates 2,268 pharmacies and 274 jewelry stores.
The stock remains very cheap, as the company has a market cap of under $19 billion. The shares were nailed back in March when the company reported weak first-quarter results. While it is slowly recovering, the sell-off is still giving investors a great entry point.
Families will be flocking to the grocery store to get all the fixings for holiday barbecues, picnics, camping trips, heading to the lake, and other Independence Day festivities.
Shareholders receive a 2.96% dividend. The Merrill has set a $28 price target. The consensus target is $28.17, and shares closed at $21.44.
While the iconic American beer company did merge with a Canadian beer giant, it is still based in Denver. Molson Coors Brewing Co. (NYSE: TAP) is one of the world’s largest brewers, with core brands Coors Light, Carling, Molson Canadian and Staropramen.
Molson and Coors merged in February 2005 and added StarBev in 2012, and it serves markets including the United States, Canada, Eastern Europe and the United Kingdom and Ireland, with exposure to other markets through its Molson Coors International division. It acquired the remainder (58%) of the U.S. joint venture (MillerCoors) in mid-October 2016.
What picnic or Fourth of July gathering would be complete without a cold beer, and you can bet that sales will ramp up for the holiday and the long weekend. The Coors light brand remains a huge favorite with Generation X and baby boomers, who were all around when the light beer revolution started.
Shareholders receive a 2.91% dividend. The Merrill price target is $70. The consensus figure is $66.56, and shares ended Tuesday at $56.13.
These five all-American companies should have solid Fourth of July sales and their stocks may be poised to continue to be solid investments for the second half of 2019. With second-quarter earnings right around the corner, it may be smart to buy partial positions now and see how the results come in.