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By Roger Choudhury

With earnings on the horizon, we decided to do a roundup of the Dow 30 to see the state of these high-yielding blue chips. Here’s how these 30 companies look from a valuation standpoint, plus some commentary on each.

American Express (NYSE:AXP) trades at 13.2 times earnings per share, 3.3 times book value per share, and 1.9 times sales per share. The industry average is 17.2, 1.9, and 2.4, respectively. Between 2003 and 2006, AXP traded between 2.5 and 2.9 times sales.

In 2010, EPS came in at $3.35, which was an increase of 117.53%, after falling by 33.91% in 2009. For 2011, analyst estimates are between $2.64 and $4.00 in EPS. Q1 2011 results come in on April 18.

For the moderate to long term, the company is focused to drive greater value to merchant base, expand customer segment penetration, accelerate International growth across businesses, achieve significant progress within Enterprise Growth, and increase share of online spend and enhance digital experience. We think shares are worth around $53 apiece using an 11% cost of equity, and on the back of modest, single-digit revenue growth the company should resume modest dividend increases, as we wrote about here.

3M (NYSE:MMM) trades at a P/E of 16.2, at 4.2 times book value per share, and at 2.5 times sales per share. The industry averages are a P/E of 19.6, P/B of 2.5, and P/S of 1.2.

In 2010, EPS came in at $5.63, which was an increase of 27.94%. For 2011, the company expects EPS to be in the range of $5.90 to $6.10. Q1 2011 earnings results will be reported on April 25.

In recent quarters, 3M made acquisitions of Winterthur Technologies, Cogent, Attenti Holdings and Arizant. This grows its opportunities in abrasives, security product and the health care market. Given past history, the company will continue to make strategic acquisitions. We think this is a low-risk high yield stock for any retirement portfolio.

Alcoa (NYSE:AA) has a P/E of 64, a P/B of 1.3, and P/B of 0.8. The industry averages are -303, 1.4, and 1.0, respectively. From 2001 to 2007, AA shares traded at the following respective P/S multiples: 1.3, 1.0, 1.5, 1.2, 1.0, 0.9, and 1.0.

In 2010, the company made $21 billion in revenues, which was an increase of 13.96%, after dropping 31.46% in 2009. For 2011, the company expects 5% to 7% sales growth in its aerospace division, 5% to 11% sales growth in its automotive division, 0% to 5% sales growth in its heavy truck and trailer division, 0% to 2% sales growth in its beverage can packaging division, 2% to 3% sales growth in its commercial building and construction division, and 5% to 10% sales growth in its industrial gas turbine division. The company also expects the aluminum global demand growth rate in 2011 to be 12% vs. 2010.

Q1 2011 earnings come out on April 11. We also like Alcoa’s ($3.75 Serial Preferred Stock), which has made all dividend payments since 2001.

AT&T (NYSE:T) trades at a P/E of 8.8, P/B of 1.5, and P/S of 1.4. The industry averages are 16.1, 2.0, and 1.4, respectively. From 2001 to 2007, T shares traded at a P/S of 2.9, 2.1, 2.1, 2.1, 1.9, 2.2, and 2.2, respectively.

In 2010, EPS was $3.35, which was an increase of 58.02%, after decreasing by 1.85% in 2009. The company expects mid-single digit EPS growth or better in 2011. Q1 2011 results are revealed on April 21.

Bank of America (NYSE:BAC) trades, not surprisingly, at - 38.9 times EPS, 0.7 times book value per share, and 1.3 times revenues per share. In comparison, the industry averages are 28.2, 0.9, and 1.4, respectively. It is also worth noting that BAC traded near 3 times sales from 2001 to 2007.

EPS was - $0.37 in 2010, after showing - $0.27 in 2009. The Street expects EPS to turn around in 2011. They give a range of $1.05 to $1.75. The company reports Q1 2011 results on April 11. As we wrote about here, we don’t like Bank of America and think Buffett was spot on when he dumped shares.

Boeing (NYSE:BA) trades under a P/E multiple of 16.1, P/B multiple of 19.1, and P/S multiple of 0.8. The industry averages are 37.6, 2.9, and 1.0, respectively. From 2004 to 2007, BA traded with P/S multiples of 0.8, 1.0, 1.1, and 1.0, respectively.

In 2010, EPS came in at $4.45, which was an increase of 141.85%, after tumbling by 49.86% in 2009. For 2011, the company expects EPS to clock in around $3.80 to $4.00, which would be a decrease of 10.1% to 14.6%. Q1 2011 results are to be released on April 18.

Caterpillar (NYSE:CAT) has a P/E of 24.1, P/B of 5.9, and P/S of 1.5. The industry averages are 31.8, 3.3, and 1.2, respectively. From 2003 to 2006, CAT traded between 1.5 and 1.6 times revenues per share.

In 2010, the company posted EPS of $4.15, which was an increase of 190.21%, after falling by 74.84% in 2009. The company expects 2011 EPS to be close to $6 per share. This would be an increase of 43% to 44%. Q1 2011 results are released on April 29.

Chevron (NYSE:CVX) shares trade with a P/E of 10.5, P/B of 1.9, and P/S of 1.0. The industry averages are 13.9, 1.9, and 0.8, respectively. From 2001 to 2007, CVX traded with P/S of 0.9, 0.7, 0.7, 0.7, 0.6, 0.8, and 0.9, respectively.

The company expects 2,790 million barrels of oil equivalent per day in 2011, which would be an increase of ~1%. This would occur after producing 2,763 million barrels of oil equivalent per day in 2010, and 2,704 million barrels of oil equivalent per day in 2009.

Q1 2011 results are supposed to be release on April 29. This is also a stock that George Soros can’t get enough of.

Cisco (NASDAQ:CSCO) has a P/E of 13.6, P/B of 2.2, and P/S of 2.4. The industry averages are 27.5, 2.6, and 2.0, respectively. From 2001 to 2007, CSCO shares trade under P/S of 6.5, 5.1, 9.1, 5.9, 4.4, 5.7, and 4.7, respectively.

In FY 2010 through July, EPS was $1.33, which was an increase of 26.67%, after falling by 19.85% in 2009. For the trailing 12 months through January 2011, EPS was $1.32. The company forecast a Q3 2011 EPS of $0.35 to $0.38 per share. So, the EPS would be $1.30 to $1.33 for the 12 months thru the end of Q3. That would still be an increase of 10.1% to 12.7%. Actual Q3 2011 earnings come out on May 11. We think Cisco could be a surprising winner in the tech space, as we wrote about here.

Coca Cola (NYSE:KO) has a P/E of 12.8, P/B of 4.8, and P/S of 4.3. The industry averages are 20, 4.9, and 2.5, respectively. From 2001 to 2007, the P/S figures were 5.8, 5.6, 5.9, 4.6, 4.2, 4.7, and 5.0, respectively.

In 2010, the company produced an EPS of $5.06, which was an increase of 72.70%, after rising by 17.67% in 2009. The company says that the Q1 2011 results will be released on April 26. We think this is a very safe idea for the 2011 ultimate retirement portfolio.

DuPont (NYSE:DD) trades with a P/E of 16.1, P/B of 5.3, and P/S of 1.5. The industry averages are 19.9, 1.3, and 0.4, respectively. From 2001 to 2007, DD traded at a P/S of 1.7, 1.7, 1.7, 1.8, 1.5, 1.6, and 1.4, respectively.

In 2010, EPS was $3.28, which was an increase of 70.83%, after falling by 12.73% in 2009. According to the company, it raised its guidance from a range of $3.30 to $3.60 per share to a new range of $3.45 to $3.75 per share. This excludes the impact of the planned Danisco acquisition, which could reduce 2011 earnings by $0.30 to $0.45 per share on a reported basis. The driver for the increase in guidance is a lower tax rate, driven by increased earnings in lower-tax jurisdictions outside the U.S., and reduced non-cash pension expense.

Q1 2011 earnings come out on April 25.

Exxon Mobil (NYSE:XOM) has a P/E of 13.2, P/B of 2.8, and P/S of 1.0. The industry averages are 13.9, 1.9, and 0.8, respectively. From 2001 to 2007, XOM traded at a P/S of 1.3, 1.2, 1.1, 1.1, 1.0, 1.2, and 1.3, respectively.

In 2011, Exxon expects to produce net 120,000 barrels of oil equivalent per day from the projects that were initiated in 2010. By 2016, the company estimates output from these projects to reach 1.4 million barrels of oil equivalent per day. Q1 2011 results are released on April 25. Consider this low beta stock if you want to anchor your portfolio during a correction and watch it if the unrest spreads to Saudi Arabia.

General Electric (NYSE:GE) trades with a P/E of 17.7, P/B of 1.8, and P/S of 1.4. The industry averages are 19.6, 2.5, and 1.2, respectively. From 2001 to 2007, GE shares traded at P/Ss of 3.2, 1.9, 2.3, 2.5, 2.5, 2.4, and 2.2, respectively.

In 2010, the company generated $150.2 billion, which was a decrease of 4.19%, after dropping by 14.1% in 2009. The company expects revenues to increase by 0% to 5% in 2011.

Q1 2011 earnings results come out on April 21.

Hewlett Packard (NYSE:HPQ) trades with a P/E multiple of 11.3, P/B multiple of 2.3, and P/S multiple of 0.8. The industry averages are 17.3, 5.1, and 1.8, respectively. From 2001 to 2007, HPQ traded with a P/S between 0.9 and 1.3.

In FY 2010 through October, EPS was $3.69. The GAAP diluted EPS was $3.93 for the trailing 12 months, which sets the current P/E as 11.1. The company raised full year EPS guidance to $4.46 to $4.54. Q2 2011 results are released on May 18. This is a low P/E stock that we think Buffett would buy.

Home Depot (NYSE:HD) trades at a P/E of 18.4, P/B of 3.2, and P/S of 0.9. The industry averages are 17.5, 2.1, and 0.7, respectively. From 2001 to 2007, HD shares traded at P/S of 2.4, 1.0, 1.3, 1.3, 1.1, 0.9, and 0.6, respectively.

In FY 2010 through January 2011, the company posted an EPS of $2.01, which was an increase of 29.7%, after increasing by 17.16% in FY 2009. The company expects EPS from continuing operations to be up 9.5% to $2.20, excluding the impact of future share repurchases. Using excess cash, the company intends to repurchase approximately $2.5 billion of outstanding shares throughout the year. Q1 2011 earnings come out on May 17. Going forward, we estimate sales growth of 5%, comparable to Lowe’s (NYSE:LOW), with operating margins reaching 10% after several years relative to last year’s 7.3% as the company capitalizes on a revamped supply chain, merchandising and pricing automation. Shares are worth $45 apiece, as we wrote about here.

Continue to Part 2 >>

Source: All Dow Jones Industrials: Sneak Peak at Spring Earnings

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