If you are an investor like me, you don’t want to miss out on any opportunity to load up on blue-chip stocks to buy when they are down. While blue-chip stocks can help build a solid retirement portfolio, many also generate steady income for the years to come.
If you’re looking for blue-chip stocks to buy, here are the top seven you can buy now at a discount. All are solid long-term buy-and-hold stock picks that should do well with patience. Grab the opportunity while you can.
Intel (INTC)
One of the top blue-chip stocks to buy is Intel (NASDAQ:INTC), which just reported revenue of $15.4 billion, up 10% year over year. EPS came in at 54 cents. Better, Intel is expanding its semiconductor and foundry business which will pay off in the long term.
Intel is a well-known name in the industry which has had its fair share of troubles. However, it holds a strong market for data center chips, and this is where we can see the business turnaround. In addition, the growing demand for artificial intelligence products has been beneficial.
PayPal (PYPL)
Another strong company that dipped on results, PayPal Holdings (NASDAQ:PYPL) has suffered with analyst downgrades and a weak earnings outlook.
The company managed to beat expectations in its fourth quarter. It also posted a total payment volume of $1.5 trillion in 2023. Revenue was up 9% to hit $8 billion, as EPS jumped 19% year over year to $1.48 per share. However, despite the strong numbers, analysts are concerned about the company’s long-term growth, which led to a drop in the stock.
In addition, while management did provide a weaker-than-expected growth forecast, investors should keep in mind that PayPal is a massive business that already has an edge in the industry. This stock will bounce back in the coming months.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) is worth holding on to for years to come. It enjoys a strong market position, is a dividend aristocrat, and enjoys high brand loyalty.
Most recently, Coca-Cola posted mixed earnings results. EPS came in at 49 cents, as revenue stood at $10.85 billion. Sales were up year over year, but it was mainly due to the higher prices in the U.S., Mexico, and Canada. I’m not too concerned, though. A dip in sales volume for one quarter doesn’t reflect its potential. Plus, if you enjoy passive income, KO is a good bet.
At the moment, KO yields 3.1% and should continue rewarding investors for years.
Pfizer (PFE)
Pfizer (NYSE:PFE) has been in a downward trend for the past six months and has lost 22% of its value. All thanks to declining revenue from its Covid-19 vaccine. However, I believe the correction is overdone.
There is so much more to Pfizer than the vaccine, and it has nine new molecular approvals by the FDA which has set the tone for 2024. It has a massive pipeline of drugs that are progressing in different phases, and the company is aiming for growth in the range of 3% to 5% for 2024.
It recently completed the acquisition of Seagen, which will help the oncology pipeline, and we will see it impact the revenue in the coming years. Trading at $27 today, the stock is down from the high of $42 and is worth buying. It also brings a dividend yield of 6.11% which is one of the best in the industry.
Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) just reported a sales decline in its domestic and international markets.
EPS came in at 90 cents while revenue stood at $9.43 billion, which was lower than market expectations. There is a perception that Starbucks supports Palestinians in the Israel-Hamas war, and this has led to a boycott of the brand.
Its second largest market, China also saw a 9% drop in sales. The company had to revise the sales outlook and this led to a dip in stock. SBUX stock is trading at $93 today and is very close to the 52-week low of $89.
However, I believe the long-term picture still looks attractive.
PepsiCo (PEP)
PepsiCo (NASDAQ:PEP) missed analyst expectations, which left investors disappointed.
According to the company, a drop in revenue was due to the higher prices. Plus, consumers are looking for cheaper alternatives. However, the latest dip in the stock is a strong opportunity to buy. As consumer spending improves, Pepsi will regain its market, and we could see the stock soar.
This was a rare revenue miss and not something that could impact the company’s long-term outlook. It also enjoys a dividend yield of 3.01% and is one rock-solid stock to buy and hold.
Deere & Co. (DE)
One of the best blue-chip stocks to buy, Deere (NYSE:DE) is one of the best construction equipment manufacturers. Unfortunately, it’s been suffering from supply chain issues.
It still managed to deliver strong growth in 2023 and saw a 42% rise in net income in the year. Trading at $364, DE stock is down 13% in the past six months and is just a little over the 52-week low of $345.
The company has solid potential to expand and it could benefit from the Infrastructure Investments & Jobs Act. It has a dividend yield of 1.61% and has steadily increased its quarterly dividends. It recently announced a 9% hike to the dividend despite an anticipated decline in earnings in 2024.
DE might be down today, but the stock is a buy on dips.
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.
