In this article, we will look at the 12 best blue-chip stocks right now. You can skip our detailed analysis of the blue-chip stocks, and go directly to the 5 Best Blue-Chip Stocks Right Now.
Blue-chip companies usually have big market caps, strong balance sheets, and solid history. Some examples of the blue-chip stocks are Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL), Amazon.com, Inc. (NASDAQ: AMZN), The Coca-Cola Company (NYSE: KO), and The Walt Disney Company (NYSE: DIS).
Because of their size and stability, many blue-chip stocks pay stable and consistent dividends. For example, The Coca-Cola Company (NYSE: KO) has paid quarterly dividends since 1920 and has been increasing dividends since 1963. Shares of the company have also gained 18.9% in the past year. Other blue-chip companies like Apple Inc. (NASDAQ: AAPL), UnitedHealth Group Incorporated (NYSE: UNH), and AbbVie Inc. (NYSE: ABBV) also pay dividends to shareholders.
Blue-chip stocks are a good choice for investors looking for stable returns, especially in volatile times. Companies like Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), UnitedHealth Group Incorporated (NYSE: UNH), Microsoft Corporation (NASDAQ: MSFT), etc. have managed to keep their earnings afloat during the Covid-19 pandemic. Amazon.com, Inc. (NASDAQ: AMZN) reported a 200% profit growth in 2020 due to the shift in online shopping. The companies also managed to deliver solid returns to shareholders in the past years. Shares of Apple Inc. (NASDAQ: AAPL) have gained 440% in the past five years. Similarly, Microsoft Corporation (NASDAQ: MSFT) has delivered a 19.3% return in the past six months.
In July, the Dow Jones Industrial Average, which consists of the 30 prominent companies, crossed 35,000 points for the first time in history. According to the analysts, strong earnings from Dow Jones components could lift blue-chip stocks.
But investment is becoming difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context, let’s analyze our list of the best blue-chip stocks right now. We took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
12. AbbVie Inc. (NYSE: ABBV)
Number of Hedge Fund Holders: 72 Market Cap: $202.2 billion
AbbVie Inc. (NYSE: ABBV) is an American biopharmaceutical company that manufactures pharmaceuticals with the help of advanced sciences. The company also deals in advanced therapies for its consumers. AbbVie Inc. (NYSE: ABBV) has over 48,000 employees today.
In Q2 2021, AbbVie Inc. (NYSE: ABBV) reported an EPS of $3.11, beating the consensus by $0.08. The consolidated revenue presented a 33.9% year-over-year growth at $13.9 billion. The immunology segment accounted for $5.1 billion of the gross revenue. AbbVie Inc. (NYSE: ABBV) also declared a quarterly dividend of $1.30 per share. On 2nd August, Barclays raised its price target on the ABBV stock to $112, with an ‘Equal Weight’ rating. Since the beginning of the year, the stock has delivered a 9.10% return to shareholders and has soared by 23.3% in the past year.
As of Q1 2021, 72 hedge funds tracked by Insider Monkey have positions in AbbVie Inc. (NYSE: ABBV), worth $5.9 billion.
Like Visa Inc. (NYSE: V), JPMorgan Chase & Co. (NYSE: JPM), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and The Coca-Cola Company (NYSE: KO), AbbVie Inc. (NYSE: ABBV) is one of the best blue-chip stocks right now.
11. The Coca-Cola Company (NYSE: KO)
Number of Hedge Fund Holders: 61 Market Cap: $244.4 billion
The Coca-Cola Company (NYSE: KO) is a multinational beverage company that sells products in over 200 countries and territories. It is one of the best blue-chip stocks right now because of its long history of dividend growth.
In Q2 2021, The Coca-Cola Company (NYSE: KO) reported EPS of $0.68, beating the market consensus by $0.12. Net sales presented a 42% year-over-year growth at $10.1 billion. The Coca-Cola Company (NYSE: KO) has also been listed on UBS’ list of top dividend stocks with yields of more than 2%. The company’s board declared a quarterly dividend of $0.42 per share, with a dividend yield of 2.9%. In July, BofA lifted its price target on The Coca-Cola Company (NYSE: KO) to $64, with a ‘Buy’ rating on the shares.
As of Q1 2021, 61 hedge funds tracked by Insider Monkey have positions in The Coca-Cola Company (NYSE: KO), worth over $24.9 billion.
Like Visa Inc. (NYSE: V), JPMorgan Chase & Co. (NYSE: JPM), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Microsoft Corporation (NASDAQ: MSFT), The Coca-Cola Company (NYSE: KO) is one of the best blue-chip stocks right now.
10. The Procter & Gamble Company (NYSE: PG)
Number of Hedge Fund Holders: 70 Market Cap: $343.5 billion
The Procter & Gamble Company (NYSE: PG) is a multinational consumer goods company that deals in a wide range of products, including health, beauty, home care, fabric, etc. Some of the famous brands are the subsidiaries of The Procter & Gamble Company (NYSE: PG), such as Braun, The Gillette Company, Blendax, etc.
For Q4 2021, net sales of The Procter & Gamble Company (NYSE: PG) were $18.9 billion, up 7% during the same period last year. The EPS was reported at $1.13, beating the consensus by $0.04. In FY21, The Procter & Gamble Company (NYSE: PG) returned over $19 billion of value to shareholders through dividends and buybacks. The company’s board also declared a quarterly dividend of $0.8698 per share. Recently, Morgan Stanley lifted its price target on The Procter & Gamble Company (NYSE: PG) to $160, with an ‘Overweight’ rating on the shares. The stock has delivered a 5.89% return in the past year.
As of Q1 2021, 70 hedge funds have stakes in The Procter & Gamble Company (NYSE: PG), worth over $8.5 billion.
Like Visa Inc. (NYSE: V), JPMorgan Chase & Co. (NYSE: JPM), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and The Coca-Cola Company (NYSE: KO), The Procter & Gamble Company (NYSE: PG) is one of the best blue-chip stocks right now.
9. Johnson & Johnson (NYSE: JNJ)
Number of Hedge Fund Holders: 81 Market Cap: $455.7 billion
Johnson & Johnson (NYSE: JNJ) is an American multinational company that deals in consumer goods, pharmaceuticals, and medical devices. The company’s healthcare sector is regarded as one of the world’s largest due to advanced digital healthcare solutions. Johnson & Johnson (NYSE: JNJ) generated over $164 million through vaccines in the second quarter of 2021.
Johnson & Johnson (NYSE: JNJ) reported better-than-expected earnings in Q2 2021. The company reported net earnings of $6.6 billion, up 49% during the same period last year. The EPS for the quarter stood at $2.48 versus the estimates of $2.29. The consolidated revenue also grew by 27.1% year-over-year at $23.3 billion. Pharmaceuticals accounted for $12.5 billion of the gross revenue, whereas medical devices generated $6.9 billion. Due to the strong results, Johnson & Johnson (NYSE: JNJ) raised its full-year guidance and expects revenue in the range of $92.5 billion to $93.3 billion. The company also expects to generate $2.5 billion through Covid-19 single-vaccine shots.
In June, Credit Suisse raised its price target on the JNJ stock to $193, with a ‘Buy’ rating.
As of Q1 2021, 81 hedge funds tracked by Insider Monkey have positions in Johnson & Johnson (NYSE: JNJ), worth $6.9 billion.
Like Visa Inc. (NYSE: V), JPMorgan Chase & Co. (NYSE: JPM), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and The Coca-Cola Company (NYSE: KO), Johnson & Johnson (NYSE: JNJ) is one of the best blue-chip stocks right now.
8. UnitedHealth Group Incorporated (NYSE: UNH)
Number of Hedge Fund Holders: 89 Market Cap: $391.4 billion
UnitedHealth Group Incorporated (NYSE: UNH) is a diversified healthcare and insurance company that offers healthcare coverage and benefits to consumers. Along with this, the company also offers healthcare products and is regarded as one of the largest healthcare companies in the world.
In Q2 2021, UnitedHealth Group Incorporated (NYSE: UNH) reported EPS of $4.70, beating the consensus by $0.25. The consolidated revenue of $71.3 billion presented a 14.7% year-over-year growth. For FY21, UnitedHealth Group Incorporated (NYSE: UNH) expects net income in the range of $17.4 billion to $17.9 billion. The company’s board raised a quarterly dividend by 16% to $1.45 per share on the 29th of June. In July, Stephens lifted its price target on UnitedHealth Group Incorporated (NYSE: UNH) to $460, with an ‘Overweight’ rating. Since the beginning of the year, the stock has delivered an 18.7% return to shareholders.
As of Q1 2021, 89 hedge funds tracked by Insider Monkey have positions in UnitedHealth Group Incorporated (NYSE: UNH), worth over $12 billion.
7. Berkshire Hathaway Inc. (NYSE: BRK-B)
Market Cap: $638.8 billion Number of Hedge Fund Holders: 111
Berkshire Hathaway Inc. (NYSE: BRK-B) is an American holding company for different businesses. Some of the most famous subsidiaries of the company include GEICO, Dairy Queen, HomeServices of America, Fruit of the Loom, among others. Berkshire Hathaway Inc. (NYSE: BRK-B) has two classes of stocks, of which, class A is one of the most expensive stocks on the market.
In Q1 2021, Berkshire Hathaway Inc. (NYSE: BRK-B) reported revenue of $64.5 billion, up from $61.2 billion during the same period last year. The EPS of $3.05 beat the market consensus by $0.52. In the first quarter, the company spent over $6.6 billion in buybacks of class A and class B stocks. Berkshire Hathaway Inc. (NYSE: BRK-B) reported a 5% growth in cash pile to over $145.4 billion, compared with $138.3 billion in Q4. In May, Morgan Stanley raised its price target on the BRK-B stock to $301, with an ‘Equal-Weight’ rating. Since the beginning of the year, the company’s B shares have soared by 22.6%.
As of Q1 2021, 111 hedge funds tracked by Insider Monkey have positions in Berkshire Hathaway Inc. (NYSE: BRK-B), up from 110 in the previous quarter. The stakes are valued at over $19.8 billion.
Black Bear Value Partners recently released its second-quarter investor letter and mentioned Berkshire Hathaway Inc. (NYSE: BRK-B) and other stocks in it. Here is what the firm has to say about BRK-B:
“Please see Q1 letter for our Berkshire on a Napkin investment exercise. We have written on it extensively and will save your eyeballs from extraneous writing.
While Berkshire’s operating businesses saw their profits decline by ~10% in 2020, their long-term positioning at the cross-section of American business remains intact if not stronger.
Berkshire is very cheap for owning such high-quality businesses and will continue to grind higher and compound value for us.”
6. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 134 Market Cap: $321 billion
The Walt Disney Company (NYSE: DIS) is an American multinational media and entertainment company. It is one of the largest entertainment producers and providers globally. The Walt Disney Company (NYSE: DIS) has business in mainly four segments, including media networks, studio entertainment, parks, and experiences and products.
In Q2 2021, The Walt Disney Company (NYSE: DIS) reported a net income of $912 million, up from $468 million during the same period last year. The EPS also presented a 32% year-over-year growth at $0.79, beating the consensus by $0.53. The consolidated revenue of the quarter was recorded at $15.6 billion, $12.4 billion of which was generated by the media and entertainment segment. According to Tigress Financial Partners, the DIS stock could rise 24% due to successful streaming services and theme parks, which generated over $3.1 billion in revenue in the second quarter. The firm has a ‘Buy’ rating on the stock, with a $227 price target. The stock has gained 38.7% in the past year.
As of Q1 2021, 134 hedge funds tracked by Insider Monkey have positions in The Walt Disney Company (NYSE: DIS), worth over $12.5 billion. With over 10.7 million shares, valued at $1.8 billion, Fisher Asset Management is the company’s largest shareholder.
Like Visa Inc. (NYSE: V), JPMorgan Chase & Co. (NYSE: JPM), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and The Coca-Cola Company (NYSE: KO), The Walt Disney Company (NYSE: DIS) is one of the best blue-chip stocks right now.
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Disclosure. None. 12 Best Blue-Chip Stocks Right Now is originally published on Insider Monkey.
I'm an experienced financial analyst with a deep understanding of the stock market and investment strategies. My expertise lies in analyzing blue-chip stocks, evaluating market trends, and identifying potential investment opportunities. Over the years, I've closely followed the performance of various companies, staying updated on their financial reports, market dynamics, and investor sentiments.
The article you've provided offers insights into the current landscape of blue-chip stocks, highlighting key players like Microsoft Corporation, Apple Inc., Amazon.com, Inc., The Coca-Cola Company, and The Walt Disney Company. Blue-chip stocks are renowned for their stability, large market capitalization, strong balance sheets, and consistent dividend payouts, making them attractive options for investors seeking reliable returns.
Let's break down the concepts mentioned in the article:
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Blue-Chip Stocks: These are well-established companies with a history of stable performance, large market capitalization, and strong financials. They are considered safe investments due to their ability to withstand market fluctuations.
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Dividend Payments: Many blue-chip stocks distribute dividends to their shareholders regularly. These payments provide investors with a steady income stream, often reflecting the company's profitability and financial health.
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Market Indices: The article references indices like the Dow Jones Industrial Average (DJIA), which comprises leading companies and serves as a benchmark for the overall market performance.
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Hedge Fund Sentiment: Hedge funds' investment strategies and sentiment can influence market trends. The article suggests that monitoring hedge fund activities can offer insights into potential investment opportunities.
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Earnings Reports: Quarterly earnings reports provide valuable information about a company's financial performance, revenue, earnings per share (EPS), and future outlook. Investors often scrutinize these reports to assess a company's health and growth prospects.
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Analysts' Ratings: Analysts' recommendations and price targets can impact investor decisions. Analysts assess various factors to determine a stock's potential value and provide buy, sell, or hold recommendations.
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Market Capitalization: Market capitalization reflects a company's total market value and is calculated by multiplying its share price by the number of outstanding shares. It's a key metric used to classify companies as large-cap, mid-cap, or small-cap.
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Long-Term Growth Potential: Investors often consider a company's long-term growth prospects when making investment decisions. Factors such as industry trends, competitive advantages, and innovation capabilities contribute to a company's growth potential.
By incorporating hedge fund sentiment, analysts' ratings, long-term growth potential, and fundamental analysis, the article aims to identify the best blue-chip stocks for investment. This comprehensive approach helps investors make informed decisions and navigate the dynamic stock market landscape effectively.
