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Hedge Funds’ 25 Top Blue-Chip Stocks to Buy Now

list of blue chip stocks

Thirty-two analysts rate CRM at Strong Buy, 10 call it a Buy and seven have it at Hold, per S&P Global Market Intelligence. For example… laundry detergent, toilet paper, baby diapers, paper towels, toothpaste and shampoo, just to name a few. AbbVie is a pharmaceutical company with a strong exposure to immunology and oncology. The firm’s top drug, Humira, represents close to half of the company’s current profits. The recent acquisition of Allergan adds several new drugs in aesthetics and women’s health.

list of blue chip stocks

An important point to note is that for 2021, Pfizer expects revenue of $33.5 billion from the Covid-19 vaccine. The company expects to deliver 2.1 billion doses of the vaccine through the year. Additionally, Pfizer has boosted its manufacturing capacity to 3 billion doses for 2022. Overall, LMT stock has been an underperformer over the last 12-months.

Diluted earnings-per share equaled $0.95 compared to $0.70 in the year ago period, a 35.7% increase. On May 1st, 2023, Sonoco Products reported first quarter results for the period ending March 31st, 2023. For the quarter, revenue was down 2.3% to $1.73 billion, which was $110 million lower than expected. Adjusted earnings-per-share of $1.40 compared unfavorably to $1.85 in the prior year, but was $0.08 above estimates. Visa has very high net margins, fluctuating around 50% since 2018.

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Investing in well-established companies can be a good strategy for long-term performance and regular dividends.

The Street is perhaps even more bullish on Abbott Labs than the hedge fund crowd, giving it a consensus recommendation of Buy, with fairly high conviction. Ten analysis rate ABT at Strong Buy, six say Buy, two call it a Hold and two have it at Sell. Hedge funds as a group might not be generating positive returns in 2022, but hey, at least they’re beating the broader market. Hedge funds as a group have a poor long-term track record, but there’s still something irresistible about knowing what the putative smart money has been up to. We explore the 25 most popular blue-chip stocks among the hedge fund crowd. Lockheed Martin is the largest defense contractor globally and has dominated the Western market for high-end fighter aircraft since the F-35 program was awarded in 2001.

When investors buy blue chip stocks, they want proven track records and promises of future success. And while investing in stocks is never a completely safe bet, blue chips are often stocks with the best risk/reward trade-off. If you want to add blue chip stocks to your portfolio, here are some very successful stocks with staying power. Remember, though, you must diversify your blue chip investments just like you would any others.

After all, the company has increased its dividend annually for 50 years. Indeed, ABT is a member of the S&P 500 Dividend Aristocrats, an index of 66 best dividend stocks that have raised their payouts for at least 25 consecutive years. Have a look at hedge funds’ 25 top blue-chip stocks to buy now. All these names likely appeal to elite funds because of their size, strong track records or outsized growth prospects.

Best Blue Chip Stocks Of July 2023

The fact that the company is plowing billions of dollars into the metaverse – a perhaps decade-long project with no guarantee of a payoff – has upended sentiment on the name. Analysts remain mostly bullish on the name, giving it a consensus recommendation of Buy, but with mixed conviction. Six analysts rate JNJ at Strong Buy, two call it a Buy and nine say Hold.

That includes a sharp decline over the past year as its profitability has fallen short of expectations. AT&T slashed its dividend in 2022, with the aim of reinvesting more in the business. Meanwhile, analysts are already starting to wonder if yet another dividend cut may eventually come about. However, some companies are relying more on past results to hold onto blue-chip status than anything they are doing today.

list of blue chip stocks

The Street is somewhat less bullish on PayPal today than it was a month ago, but its collective optimism remains high. Twenty-six analysts call it a Strong Buy, 11 say Buy, nine have it at Hold and one rates it at Strong Sell, per S&P Global Market Intelligence. “We continue to believe UNH remains the bellwether in the healthcare services space.”

Best Blue-Chip Stocks to Buy: Walmart (WMT)

The bottom line is that the smart money still very much likes the sprawling money center bank. Although the pros give this blue chip a consensus recommendation of Buy, conviction is highly mixed. But for what it’s worth, their consensus recommendation comes to Buy. Berkshire Hathaway’s (BRK.B, $319.24) appeal to the hedge fund crowd is obvious. Chairman and CEO Warren Buffett is arguably the greatest long-term investor of all time. And investors of all sizes have to be pleased with the way DIS has held up in an otherwise dismal year for stocks.

However, blue-chips are popular among investors, especially older or more risk-averse investors, because of their reliability. That doesn’t mean they’re immune to market downturns, but it does mean they’ve shown a history of weathering these storms and bouncing back. While there is no formal definition of a blue-chip stock, these companies are known for being valuable, stable and established. They’re typically big names — often household names — in their industries, and investors count on them for their reliability. The bottom line is that hedge funds sold a net of 25.7 million shares in Microsoft in Q4.

That represents only a small increase over the previous quarter, yet the number of hedge funds counting HD as a top 10 position jumped nearly 77% – to 53 from 30 – from Q3 to Q4. ABBV is best known for blockbuster treatments such as Humira, a rheumatoid arthritis drug on pace to surpass Lipitor as the best-selling drug of all time. Hedge funds, however, appear increasingly attracted to the pharma company as a value play. AbbVie’s pipeline of drugs under development – and its 50-year streak of dividend increases – only add to its appeal. One overhang on Merck’s stock has been the company’s reliance on blockbuster cancer drug Keytruda, which will lose patent exclusivity in 2028.

Indeed, 40% of all hedge funds, or 730, owned AMZN as of the fourth quarter’s end. Analysts’ consensus recommendation stands just shy of Strong Buy, with 21 Strong Buy ratings, 10 Buys and four Hold calls. They expect the company to generate average annual EPS growth of 18.6% over the next three to five years, per S&P Global Market Intelligence. The Street, for its part, remains a big believer in the name, giving NVDA a consensus recommendation of Buy. Twenty-six analysts rate shares at Strong Buy, eight say Buy, six have them at Hold and two say Sell.

Bigger list of blue chips

As of Dec. 31, nearly 28% of all hedge funds, or 507 in total, owned shares in JPM. New positions rose by nearly three-quarters, to 47 hedge funds from 27 hedge funds in Q3. The number of hedge funds increasing their stakes rose 10%, while those reducing or closing their positions fell vs. Q3.

list of blue chip stocks

The number of hedge funds initiating stakes in the tech and retailing colossus rose more than tripled, to 110 from 34 in the prior three-month period. Meanwhile, the number of hedge funds exiting their stakes tumbled to 43 from 74, and those that reduced their holdings fell to 204 in Q4 from 247 in Q3. Interestingly, at least some hedge funds appear to have anticipated this regime change.

Pros of Blue-Chip Stocks

The stock trend is likely to reverse in 2022 as markets search for value. From a backlog growth perspective, Lockheed has seen significant growth in orders from outside the United States. With NATO allies still falling short of the defense spending target, it’s likely that order intake will remain strong. Even during the pandemic, global defense spending increased to touch nearly $2 trillion in 2020. Overall, TSLA stock is worth buying on corrections and is among the top blue-chip stocks to hold for 2022 and beyond. The economy of the United States is primarily driven by consumption, a key part of which is retail spending.

  • The number of hedge funds opening new positions more than doubled vs. the previous quarter, but then the number of funds closing their positions increased by nearly half.
  • Johnson & Johnson also has a vast pharmaceutical business and produces drugs such as the arthritis treatment Remicade, prostate cancer drug Zytiga, and psoriasis drug Stelara.
  • Shares are off 3.5% for the year-to-date, vs. an 8% decline for the S&P 500.
  • The corporation was founded in 1905 as The Lincoln National Life Insurance Company.
  • He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

PFE stock is another undervalued name among blue-chip stocks that can potentially rally in 2022. The stock currently trades at a forward P/E of 10.8x and offers investors a dividend yield of 3.57%. Overall, CVX stock seems positioned for further rally in 2022. This is likely to be backed by strong cash flows and possible dividend growth.

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The company is a growing producer of energy — much of it generated by renewable sources — that it sells and transfers to utility companies in other markets. The steady demand for electricity that underpins its business, combined with growth in demand for renewable energy, gives NextEra a premium valuation and blue chip status. Sonoco Products provides packaging, industrial products and supply chain services to its customers.

Conglomerate Honeywell International is exposed to many different sectors and tends to closely track the performance of the wider market. Explore the world of large-cap stocks and learn how these can shape your portfolio. Blue chip stocks are the stocks of well-known, high-quality companies that are leaders in their industries. These companies have stood the test of time and are respected by their customers and their shareholders.