The stocks of these high-quality companies with large market capitalizations look undervalued today.
Investors often hold blue-chip stocks at the core of their portfolios. Why? Blue-chip stocks are from companies that are large, well-established, and financially sound. These companies are leaders in their industries with strong brand names and reputations, and they generate dependable earnings. Blue-chip stocks usually boast consistent dividends and are often considered to be less risky, given the financial stability of these companies.
However, investors may differ on what is required for a stock to be considered a blue-chip stock. Some investors demand that a stock be included in a particular index, such as the Dow Jones Industrial Average. Others may only include dividend-paying stocks in their list of blue-chip stocks. Still others may have specific market capitalization thresholds for blue-chip stocks.
The blue-chip stocks on Morningstar’s list of the best ones to buy for the long term share a few qualities:
The stocks are from companies included on Morningstar’s list of the Best Companies to Own for 2023. Companies on this list have wide Morningstar Economic Moat Ratings and predictable cash flows, and they are run by management teams that make smart capital-allocation decisions.
These stocks look undervalued, which means they’re trading below Morningstar’s fair value estimates.
Their market capitalizations top $100 billion.
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