And their strength and reliability make them compelling investments for investors of all experience levels, from beginners to experts. Earnings-per-share of $1.18 compared favorably to earnings-per-share of $1.13 in the prior year and was $0.04 more than expected. Adjusted earnings-per-share of $0.81 compared favorably to $0.64 in the prior year and was in-line with expectations. Year-to-date, net sales rose 4.9%, with strong Back-to-School sales and contributions from the Rogan’s Shoes acquisition driving performance.
Through its subsidiaries, GEICO and Gen Re, Berkshire offers various lines of commercial and personal insurance. To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products. The stock currently trades at its lowest P/E ratio since 2019, while its forward P/E ratio is even cheaper. It currently trades significantly lower than its all-time high from November 2021. Sports giant Nike has shown tremendous growth for many years, fighting its way to the top of the market since going public in 1980. Multinational consumer goods producer Procter & Gamble specializes in personal care and hygiene products.
Investors may balk at this stock’s P/E ratio, especially given the size of the premium compared to rivals such as Target. However, this ratio was as high as 43.7 in October 2022, and above 50 the prior year, meaning the current mark could historically be considered low. However, this is not exactly cheap—AAPL’s forward P/E ratio is the highest on our list. But it’s well off its most recent highs, as this key ratio rose above 40 during the pandemic.
In early August, TELUS reported (8/1/25) financial results for the second quarter of fiscal 2025. Other sales decreased 4.8% to $416.1 million due to lower volumes and weaker pricing and mix. Materials, supplies, labor, and other production costs accounted for 51.2% of sales during the quarter, which was a 110 basis point increase from the prior year.
The company offers low-cost, high-speed internet access and private network services to small to medium-sized businesses in 50 countries worldwide. The company posted adjusted EBITDA of $715 million, up from $576 million in Q1, reflecting lower feedstock costs, stronger polyethylene volumes and margins, and improved styrene profitability. The company posted revenues of $7.66 billion, marking a slight sequential decline from $7.68 billion in Q1, due to ongoing macroeconomic pressures, though improved operating rates supported volumes in key segments. LyondellBasell is one the largest plastics, chemicals and refining companies in the world. The company provides materials and products that help advance solutions for food safety, water purity, fuel efficiency of vehicles, and functionality in electronics and appliances. Delek Logistics provides services such as gathering, transporting, and storing crude oil, as well as marketing, distributing, and storing refined products for both Delek US and third-party customers.
Gold Bullion Bars Prices: Waiting Before the Next Ascent
- Spinning off Kenvue has also positioned J&J for better growth because the consumer health products business was generally considered the weaker of the company’s segments.
- A second powerful strategy involves using options strategically around core blue chip positions—particularly selling cash-secured puts during volatility spikes.
- Perrigo’s history goes all the way back to 1887 when Luther Perrigo, the proprietor of a general store and apple-drying business, had the idea to package and distribute patented medicines and household items for country stores.
- It is also a leader in digital services and applications with platforms like the App Store and Apple Music.
With over 400 stores across the U.S. under the Shoe Carnival, Shoe Station, and Rogan’s Shoes brands, the company has steadily expanded its market presence. The company’s cards have surged in popularity among millennials and Gen Z consumers. Those younger age demographics are driving account registrations and accounting for a third of overall spending through the AmEx network. The company innovated with its Macintosh computers in the 1980s and made media portable with its iPods in the early 2000s. In a world where consumers flock to the latest tech fads, Apple’s products enjoy notable loyalty from its customer base. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
- The opportunity awaits for those with sufficient courage to act when others flee.
- Year-to-date, net sales rose 4.9%, with strong Back-to-School sales and contributions from the Rogan’s Shoes acquisition driving performance.
- With over 400 stores across the U.S. under the Shoe Carnival, Shoe Station, and Rogan’s Shoes brands, the company has steadily expanded its market presence.
- Market panics typically begin in more speculative sectors before infecting even high-quality blue chips, creating sequential opportunities across different segments.
- “Despite the challenges from a bear market, hedge funds delivered resilient performance in 2022,” notes Barclays Capital Solutions.
What are the benefits of investing in blue chip stocks?
Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies. NVIDIA Corporation specializes in graphics processing units (GPUs) for gaming and professional markets, and is a pioneer in AI technology and data center solutions. Its products are widely used in supercomputing and autonomous vehicle applications.
These companies are typically leaders in their respective industries and have a strong market presence. Blue chip stocks are considered to be relatively safer investment options as they tend to be less volatile and have a track record of delivering steady returns over time. This pattern—quality blue chip companies experiencing substantial price declines during market panics despite minimal fundamental impairment—creates precisely the asymmetric opportunities that contrarian investors seek.
Why are they called blue chip stocks?
Looking forward, the company is trading at a P/E ratio that is toward the top of its five-year range, meaning it does not stand out from a valuation perspective. Its P/E ratio doubled from July 2022 to April 2023, and at that time was the highest on our list. However, when you consider future earnings, things look a little more optimistic.
High Yield Blue Chip #1: Cogent Communications Holdings (CCOI)
One thing these big names have in common is cost efficiency, which can lead to strong earnings growth and distribution. The EV manufacturer was incorporated as Tesla Motors in July 2003, with Elon Musk joining as its largest shareholder in February 2004. Tesla’s Model 3 is the all-time bestselling plug-in electric car globally, and became the 1st electric car to sell 1 million units worldwide in June 2021. Alphabet Inc, the parent company of Google, dominates the online advertising market and is a leader in various tech fields including search engines, cloud computing, and artificial intelligence. Its diverse portfolio includes YouTube, Android, and the Google Cloud Platform.
High Yield Blue Chip #10: Enterprise Products Partners LP (EPD)
For the six-month period, net income was $9.3 million, or $0.67 per diluted share, versus $10.6 million, or $0.76 per diluted share, in 2024, with similar factors contributing to the $1.3 million decrease. A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor’s Business Daily, among many other outlets. As a senior writer at AOL’s DailyFinance, Dan reported market news from the floor of the New York Stock Exchange. That’s partly a function of Dow stocks’ massive market caps and attendant liquidity, which, as noted, provide ample room for institutional investors to build or pare large stakes.
Psychological Arbitrage: Using Blue Chips to Exploit Market Fear
They are known for their reliability, strong balance sheets, and ability to generate consistent returns for investors. However, just about every investor can benefit from having a blue chip stock list portion of their portfolio invested in blue chip stocks. It doesn’t have to be a set percentage; investors will have varying viewpoints about how much risk they want to assume.
The company’s operations are integral to Delek US’s refining activities, particularly supporting refineries in Tyler, Texas, and El Dorado, Arkansas. Management reiterated its guidance for 2%-4% growth of revenue and 3%-5% growth of adjusted EBITDA in 2025. Revenue grew 2%, mostly thanks to higher service revenues in TELUS Health segment. Earnings-per-share declined -12%, from $0.25 to $0.22, mostly due to thinner operating margins.
These high-growth upstarts aim to be the blue chip companies of tomorrow. The opportunity awaits for those with sufficient courage to act when others flee. Similarly, JPMorgan Chase presents a recurring pattern of fear-driven undervaluation during financial system stress. The company has repeatedly leveraged these crisis periods to strengthen its competitive position while investors who accumulated shares during peak fear captured significant subsequent appreciation as emotional selling subsided.
Should You Invest in Blue Chip Stocks?
These case studies demonstrate not abstract concepts but practical examples of psychological arbitrage in action. Not all blue chip stocks are the same, but they have underlying characteristics that make them easy to spot. While blue chip companies can be reliable, that also comes with slower growth. This feature makes them a conservative option for investors looking for a safe bet for an already established portfolio.
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