Should I buy blue-chip?
The blue chip stocks' attractive risk-reward profiles make them among the most popular for conservative investors. But even more risk-tolerant investors should consider buying blue chip stocks to diversify their portfolios and provide stability during turbulent stock market conditions.
Investing in blue chip stocks is a great option for those who are just starting in their careers and may not be able to put aside too much. For instance, a long-term plan such as the Blue Chip Investment Plan can be extremely beneficial when you're young and have lots of time to grow your wealth.
Yes, Blue Chip Funds can generally be good investments. They focus on well-established, financially stable companies, offering stability and the potential for consistent returns. However, suitability depends on your financial goals and risk tolerance.
The stock market is full of opportunities, but blue-chip stocks are the way to go when it comes to reliable, long-term investments. These companies are the cream of the crop, with solid financials, strong market positions, and a history of weathering economic storms.
Investing in fundamentally strong blue-chip stocks is a proven strategy to build long-term wealth. Typically, blue-chip companies enjoy multiple competitive moats and market-leading positions, allowing them to generate stable cash flows across market cycles.
S.No. | Company | Industry/Sector |
---|---|---|
1. | Tata Consultancy Services Ltd | IT - Software |
2. | Infosys Ltd | IT - Software |
3. | Hindustan Unilever Ltd | FMCG |
4. | Reliance Industries Ltd | Refineries |
Stock | 2024 return through March 31 |
---|---|
Avidity Biosciences Inc. (RNA) | 182% |
Arcutis Biotherapeutics Inc. (ARQT) | 206.8% |
Janux Therapeutics Inc. (JANX) | 250.9% |
Trump Media & Technology Group Corp. (DJT) | 254.1% |
Although blue chips are reliably stable, they are unlikely to generate the same high returns as potentially riskier investments. Despite their stability, blue chip stocks can experience volatility and failure, as did some during the 2007-2008 financial crisis.
In general, the average rate of return on blue-chip stocks is around 10%, which is similar to the indices that they are featured on. A good indicator of blue-chip status is if the company is listed on a renowned stock index.
- Reliance Industries Ltd. Conglomerate.
- Tata Consultancy Services Ltd. Information Technology.
- Infosys Ltd. Information Technology.
- HCL Technologies Ltd. Information Technology.
- Hindustan Unilever Ltd. Fast-Moving Consumer Goods.
- ITC Ltd. ...
- Nestle India Ltd. ...
- HDFC Bank Ltd.
Is Costco a blue chip stock?
As a small example, Costco Wholesale (NASDAQ:COST) has trended higher by 226% (capital gains) in the last five years. This has led to this list of blue-chip stocks under $20.
Some examples of blue chip stocks are Coca Cola, Apple, IBM, American Express, McDonalds, DuPont, and American Express.
Market Volatility: Although Blue Chip stocks are less volatile than smaller-cap firms, market movements can nevertheless harm them. Economic Downturns: Even Fortune 500 corporations are not immune to economic downturns. The value of their stock may fall during severe economic downturns.
Along with Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and The Proctor and Gamble Company (NYSE:PG), Realty Income Corporation (NYSE:O) is one of the best retirement stocks to buy according to the media.
Seattle-based Amazon will share membership in the Dow with the likes of Apple, Boeing, JPMorgan Chase and Coca-Cola. WHAT IS THE DOW? It's a measure of 30 stocks of established, well-known companies. These stocks are sometimes known as blue chips, which are supposed to be on the steadier and safer side of Wall Street.
The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN. They're much more volatile. Tesla, for example, is down about 23% so far this year.
S.No. | Name | CMP Rs. |
---|---|---|
1. | Life Insurance | 981.45 |
2. | Hindustan Zinc | 410.90 |
3. | I R C T C | 1025.45 |
4. | Lloyds Metals | 731.75 |
- Celsius, Sweetgreen, and Instacart are up between 59% and 95% so far in 2024.
- Celsius may not seem cheap right now, but five years ago you could've bought it for less than what it should earn next year.
Stock | Sector | Trailing 12-month dividend yield* |
---|---|---|
Abbott Laboratories (ABT) | Health care | 1.9% |
Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
Atmos Energy Corp. (ATO) | Utilities | 2.7% |
T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
Stock | Expected Change in Stock Price* |
---|---|
Tesla Inc. (TSLA) | 61% |
Mastercard Inc. (MA) | 14.2% |
Salesforce Inc. (CRM) | 7.2% |
Advanced Micro Devices Inc. (AMD) | 11.3% |
Is Walmart a good stock to buy?
Walmart has a conensus rating of Strong Buy which is based on 25 buy ratings, 3 hold ratings and 0 sell ratings. The average price target for Walmart is $65.73. This is based on 28 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
S.No. | Name | CMP Rs. |
---|---|---|
2. | Brightcom Group | 14.94 |
3. | Axita Cotton | 23.63 |
4. | Easy Trip Plann. | 46.36 |
5. | Radhika Jeweltec | 63.50 |
Stock (ticker) | Market Capitalization |
---|---|
AbbVie Inc. (ABBV) | $320 billion |
Coca-Cola Co. (KO) | $256 billion |
Nike Inc. (NKE) | $138 billion |
Goldman Sachs Group Inc (GS) | $133 billion |
The best blue-chip stocks demonstrate consistent profitability and steady or growing revenue. They also have an attractive valuation based on fundamental metrics such as P/E ratio, P/B ratio and dividend yield.
Stocks | Sector | 12-month dividend yield |
---|---|---|
Exxon Mobil Corp. (XOM) | Energy | 3.8% |
Walgreens Boots Alliance Inc. (WBA) | Health care | 7.6% |
PepsiCo Inc. (PEP) | Consumer defensive | 3% |
McDonald's Corp. (MCD) | Consumer cyclical | 2.1% |
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