How do you identify blue-chip stocks? (2024)

How do you identify blue-chip stocks?

To be considered a blue chip, a company must be well-known, well-established, and well-capitalized. Blue chip companies must have been in business long enough to have weathered many different economic situations, showing that they can remain stable and profitable as circumstances around them change.

How do you know if a stock is blue-chip?

Stocks that are considered blue-chip stocks generally have these things in common: Large market capitalization. Market cap is a measure of the size and value of a company. Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more.

What determines a blue-chip stock?

A blue chip stock is stock issued by a large, well-established, financially-sound company with an excellent reputation. Normally, such companies have operated for many years, have dependable earnings, and usually pay dividends to investors. A blue chip company typically has a market capitalization in the billions.

Which stocks are typically blue-chip stocks?

Blue Chip Stocks List in India 2024
Company NameIndustryMarket Cap (in Cr)
Coal India LtdMetals & Mining₹2,31,502
Bajaj Auto LtdAutomobiles₹2,00,593
Wipro LtdSoftware₹2,51,802
ITC LtdTobacco₹5,80,902
6 more rows
Jan 23, 2024

Where would you find a blue-chip stock?

As can be expected, blue-chip stocks are in the major indexes: the S&P 500, the Dow Jones Industrial Average, and the NASDAQ-100.

Is Home Depot a blue-chip stock?

Home Depot: Headquartered in Atlanta, GA, this company stands as another distinguished blue-chip stock, dominating the home improvement retail sector.

Is Walmart a blue-chip stock?

Walmart (WMT)

Another one of the top blue-chip stocks to buy is Walmart (NYSE:WMT), which offers reliable dividend payments and steady appreciation. The equity has a 1.4% dividend yield and has gained 76% over the past five years. The stock is also up by 14% over the past year.

Is Costco a blue-chip stock?

WMT, The Home Depot, Inc. HD and Costco Wholesale Corporation COST. Thanks to successful business operations, these bellwethers have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility.

Which blue-chip stocks have fallen the most?

Blue Chip* Top Losers of Indian Stocks
NameSymbol% Loss
Bajaj FinanceBAJFINANCE-10.37
Zee Entertainment Enterprises Ltd.ZEEL-8.51
Bajaj Finserv Ltd.BAJAJFINSV-6.82
Godrej Consumer Products Ltd.GODREJCP-6.41
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Is Tesla a blue-chip stock?

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.

Is Target a blue-chip company?

These blue-chip stocks are at risk at generating more losses for shareholders. Disney (DIS): The stock currently trades at 2014 levels and is still producing regular flops. Target (TGT): The CEO warned that consumers are pulling back on their groceries which means they are also pulling back on everything else.

Which stocks will boom in 2024?

Image source: Getty Images.
  • Fastly. The first superb stock that has all the tools needed to deliver triple-digit returns for investors in 2024 is edge cloud company Fastly (FSLY -3.85%). ...
  • Novavax. ...
  • Fiverr International. ...
  • StoneCo. ...
  • PubMatic. ...
  • Lexicon Pharmaceuticals. ...
  • Match Group.
Jan 2, 2024

What is the difference between a regular stock and a blue-chip stock?

Income stocks provide regular income by distributing a company's profits, or excess cash, through dividends that are higher than the market average. Blue-chip stocks are shares of well-established companies with a large market capitalization.

What is the safest stock ever?

Safe Stocks To Invest In
  • The Hershey Company (NYSE:HSY) Number of Hedge Fund Holders: 44. ...
  • The Coca-Cola Company (NYSE:KO) Number of Hedge Fund Holders: 61. ...
  • The Home Depot, Inc. (NYSE:HD) ...
  • PepsiCo, Inc. (NASDAQ:PEP) ...
  • The Procter & Gamble Company (NYSE:PG) ...
  • Merck & Co., Inc. ...
  • Johnson & Johnson (NYSE:JNJ) ...
  • Walmart Inc.
Jul 27, 2023

How risky are blue-chip stocks?

Blue chip stocks are usually less risky and thus considered safer than other stock-based investment options. That's because one of the major determining factors of a blue chip stock is that it must be a well-capitalized company, meaning it should have the financial fortitude to endure an inevitable economic downturn.

Is Mcdonalds a blue-chip stock?

McDonald's (MCD)

The Golden Arches is about as reliable a blue-chip stock as an investor can hope to find.

Is Starbucks a blue-chip stock?

Starbucks (SBUX)

As of writing this article, the stock hovers around $97 after a rapid decline from its mid-November highs. Lately, fears around its expansion into China's market have led to the stock's downfall. However, SBUX is still one of the undervalued blue-chip stocks to buy.

Is Amazon a blue-chip company?

Companies like Alphabet (GOOGL), Amazon.com (AMZN) and Nvidia (NVDA) would generally be considered blue-chip stocks, but are not included in the DJIA. Which blue-chip stocks pay the highest dividends?

Which blue-chip stocks to buy today?

Our Advisor's Choice
Stock NameQtyPrice Type
HDFC Bank100Market
LIC INDIA100Market
INFY100Market
Total

Is Ford a blue-chip stock?

The US automaker this week clinched a blue-chip grade from S&P Global Ratings. An upgrade of Ford Motor Co.'s credit rating to investment grade pulled $46.8 billion of debt out of junk bond indexes last month — helping to shrink a global benchmark of the asset class by the most since 2005.

How do I buy blue-chip stocks?

How to Buy Blue Chip Stocks. You can buy blue chip stocks as individual stocks or through funds that contain tens or hundreds of stocks. Investing in individual shares of blue chip stocks comes with greater risk than investing in diversified mutual funds and exchange-traded funds (ETFs).

Is Lowes a blue-chip stock?

In the investment world, Lowe's is generally regarded as a blue-chip stock. Think of this as the VIP section of the stock market; companies make the cut because of their financial fortitude, long-standing history, and ability to weather economic storms.

Is Coca Cola a blue-chip stock?

Investing in high-quality blue chip companies can be a way to strengthen your stock portfolio. Apple, Berkshire Hathaway, Coca-Cola, Johnson & Johnson, and American Express stand out as top blue chip stocks.

Is Pfizer a blue-chip stock?

Pfizer stock offers the highest trailing yield among our list of the best blue-chip stocks to buy for the long term. We don't think the market fully appreciates the pharmaceutical giant's ability to offset major patent losses over the next five years, argues Morningstar director Damien Conover.

What stocks go up during a crash?

7 Stocks That Outperform in a Recession
StockImplied upside from Nov. 27 Closing Price
Walmart Inc. (ticker: WMT)16.1%
Abbott Laboratories (ABT)10%
Synopsys Inc. (SNPS)3%
Accenture PLC (ACN)2.6%
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