Updated on March 30, 2023
As a result of the recent dip in blue-chip stocks, many investors have been interested in low-price blue-chip stocks. Blue-chip stocks refer to stocks of well-respected companies with large market caps and a long-trusted history behind them. Investors covet stocks of these companies because they typically offer stable returns in the form of dividends, plus they’re a safe bet for those hedging their portfolios.
Blue-chip stocks provide a safe haven for investors’ money during times of market volatility. Their share prices typically don’t drop as much and are also quicker to recover when they do.
Here are a few blue-chip stocks that are currently cheap that you might consider buying.
Apple (ticker: AAPL)
Apple is currently a cheap stock making this an excellent steal for savvy investors. Owing to the company’s size and stature in the marketplace, investors rarely get an opportunity to get in at the current stock price of $146 per share. This consumer electronics giant was not immune to this year’s market downturn, with the stock dropping nearly 25%.
The company’s stock price recently took a dive following news that China’s zero-covid policy was again negatively impacting its ability to meet production quotas for its latest iPhone. This problem isn’t expected to persist in the long term.
PepsiCo (ticker: PEP)
Although the snack and beverage company’s stock price has rallied by 5%, compared to the 34% decline in the Nasdaq, the stock remains fairly cheap. PepsiCo stock is trading at roughly $183 per share.
The company has a wide range of products under its belt- from the Pepsi soft drink and Frito Lay Chips down to the Gatorade sports drink. All these are products with healthy demand and are loved by consumers worldwide.
The company reported a revenue of $79 billion in 2021 and didn’t suffer terribly during the Covid-19 crisis. In fact, sales held up quite well despite the pandemic. In March of 2022, Pepsico announced its decision to raise dividends by 7%, making the total increase over the past five years amount to 43%. The company also has plans to buy back $1.5 billion of its stock this year, making it a unique, untapped opportunity for investors.
Home Depot (ticker: HD)
This stock is down 29% this year, making it a hot stock for investors looking to get in while it’s cheap. Home Depot is likely to rebound down the line due to its dominance in the home renovation and DIY home repair markets. Despite this year’s decline, the stock still rallied 78% over the past five years.
The company’s second-quarter results added to its strong sales record, and it has maintained its forecast for total and comparable sales to grow roughly 3% for this year.
Visa (ticker: V)
This company forms part of the trio of the world’s largest credit card issuing companies. However, because of the pandemic, its stock dropped by 11%. Although the pandemic slowed business, the company has a bright future as most countries have returned to normalcy.
Visa has also been battling the drop in its Russian business following the Ukrainian invasion. Over the past five-year period, shareholders have fairly good returns. Visa is currently at what feels like rock bottom, but what is equally an unprecedented opportunity.
Bank of America (ticker: BAC)
This stock is down 20%, owing to the general selloff of bank stocks. Bank of America shares are currently one of the lowest-priced blue-chip stocks on the market. Despite the decline in share price, investors should remember that this remains the second biggest lender in the U.S. and, therefore, a very appealing long-term investment.
Rate hikes by the U.S. Federal Reserve have reset the bank’s variable rate loans at higher levels, thereby promising a stock price rebound in the future. Additionally, the bank has increased its deposit base ($1 trillion) and significantly invested in technology to improve its online presence and electronic transactions.
On top of all this, the bank’s wealth management business continues to prosper amidst the current market volatility. For all these reasons, Bank of America stock looks like a safe bet for the future.
Berkshire Hathaway (ticker: BRK.B)
Many savvy investors consider this stock to be the crème of blue-chip stocks. The company has repeatedly proven that its stock price can outperform the market regardless of the environment.
The company also has a huge portfolio of stocks thought to be valued at roughly $300 billion. Warren Buffet’s wise portfolio creation has shielded the company from market volatility many times.
Additionally, the company released strong third-quarter financials that indicated a 20% gain in its operating profit. It also organized a share buy-back worth $1 billion between July and September.
Ford (ticker: F)
Shares of this company have taken the biggest beating this year leading to a share price drop of 38% year to date. Although the current market volatility is the leading cause, the company has also faced supply-chain-related problems that have stalled production.
However, with its new focus on tapping into the electric vehicle market, there is reason to believe that the stock will rebound in the future. Electric versions of its loved models, such as the Mustang sports car and F-150 pick-up truck, could help revive the brand and turn it into a recognized global player in the EV market.
Savvy investors aren’t only those that know when to buy, hold and sell but also those who can spot an opportunity a mile away. This list contains blue-chip stocks such as Apple, Pepsi, Home Depot, and others with great potential to rebound big in the near future. Therefore, for those with an appetite, now might be an excellent time to dig in.
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What are Low-Price Blue-Chip Stocks right now?
- Ford (ticker: F)
- Berkshire Hathaway (ticker: BRK.B)
- Berkshire Hathaway (ticker: BRK.B)
- Visa (ticker: V)
- Home Depot (ticker: HD)
- PepsiCo (ticker: PEP)
- Apple (ticker: AAPL)