For investors seeking to bolster their portfolios with blue-chip stocks, the current market environment offers an opportune moment to acquire these stalwarts at discounted prices. Blue-chip stocks not only provide a solid foundation for retirement portfolios but also offer steady income streams over the long haul.
If you’re on the lookout for blue-chip equities to add to your portfolio, here are seven top-notch options currently available at a bargain. These are commendable long-term investments that warrant patience. Seize the moment while it lasts.
Intel (INTC)
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One of the premier blue-chip stocks currently available is Intel (NASDAQ:INTC), which recently reported a 10% year-over-year surge in revenue to $15.4 billion. The company’s earnings per share (EPS) amounted to 54 cents. Notably, Intel is strategically expanding its semiconductor and foundry operations, laying the groundwork for substantial long-term gains.
Although Intel has faced its fair share of challenges, it remains a dominant force in the data center chip market, where a business resurgence seems likely. Moreover, the burgeoning demand for artificial intelligence products bodes well for the company.
PayPal (PYPL)
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Another robust contender that has experienced a downturn is PayPal Holdings (NASDAQ:PYPL), confronting analyst downgrades and a tepid earnings outlook.
While the company exceeded expectations in the fourth quarter and notched a $1.5 trillion total payment volume in 2023, with revenue soaring 9% to reach $8 billion and EPS leaping 19% to $1.48 per share, concerns about its long-term growth prospects among analysts have caused a decline in the stock price.
However, given PayPal’s substantial presence in the industry, notwithstanding a weaker-than-expected growth projection from management, astute investors should recognize its resilience. It’s only a matter of time before this stock stages a resurgence.
Coca-Cola (KO)
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Coca-Cola (NYSE:KO) is a stock worth holding onto for the long haul due to its formidable market positioning as a dividend aristocrat with robust brand loyalty.
Despite recent mixed earnings results, with an EPS of 49 cents and revenue amounting to $10.85 billion, augmented primarily by higher prices in the U.S., Mexico, and Canada, the decline in sales volume over a single quarter should not raise undue concern about its potential. Moreover, for investors seeking passive income, KO proves to be a prudent choice.
Currently offering a 3.1% yield, KO is poised to deliver rewarding returns to investors for years to come.
Pfizer (PFE)
Pfizer’s Path Forward
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Pfizer’s Ongoing Innovations
Pfizer (NYSE:PFE) has been grappling with a downward trend for the past six months, showing a significant decline of 22% in its value – largely attributed to a reduction in revenue from its Covid-19 vaccine. Nevertheless, delving beyond the surface reveals a compelling narrative of resilience and potential resurgence.
There is so much more to Pfizer than the vaccine, with the FDA recently greenlighting nine new molecular entities, setting a formidable stage for the company’s trajectory through 2024. Bolstered by a robust pipeline of drugs advancing through various phases, Pfizer is poised for growth in the 3% to 5% range for 2024.
Moreover, the recent completion of the Seagen acquisition holds promise for Pfizer’s oncology pipeline, signaling prospective revenue impact in the forthcoming years. Currently priced at $27 – down from its high of $42, the stock presents an enticing investment proposition and boasts a dividend yield of 6.11%, a standout figure within the industry.
Starbucks’ Recent Struggles
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Starbucks (NASDAQ:SBUX) recently reported a downturn in sales across both domestic and international markets, intensifying market scrutiny and dampening investor sentiment.
With EPS at 90 cents and revenue at $9.43 billion, falling short of market expectations, Starbucks faced additional pressure from geopolitical tensions, spawning a boycott over its perceived stance on the Israel-Hamas conflict.
Besides, the brand’s second-largest market, China, witnessed a 9% drop in sales, prompting a revision of sales outlook and precipitating a decline in stock. Today, SBUX stands at $93, a stone’s throw away from the 52-week low of $89.
PepsiCo’s Revenue Miss
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PepsiCo (NASDAQ:PEP) faced disappointment after missing analyst expectations, attributing the revenue decline to higher prices and increased consumer preference for more affordable alternatives.
Nonetheless, amidst this rare revenue miss and the resultant market flux, the current dip in stock presents a compelling buy-in opportunity. As consumer spending rebounds, Pepsi is poised to reclaim its market position, potentially fueling a robust stock upswing. With a dividend yield of 3.01%, Pepsi remains a steadfast stock for long-term investors.
Deere & Co.: Weathering Supply Chain Woes
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Deere & Co. (NYSE:DE) – renowned as one of the premier manufacturers of construction equipment – has been contending with supply chain challenges, offsetting its otherwise robust performance in 2023, marked by a 42% surge in net income.
Presently priced at $364, down 13% in the last six months and marginally above the 52-week low of $345, Deere & Co. holds substantial expansion potential, poised to benefit from the Infrastructure Investments & Jobs Act. Furthermore, with a 1.61% dividend yield and a recent 9% dividend hike, Deere & Co. presents an attractive “buy-on-dips” opportunity, underpinned by enduring market stability and future growth prospects.
On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
