Is Ford a blue-chip stock?
Ford (NYSE:F) is another blue-chip stock to buy that has remained subdued in the last 12 months.
A blue chip stock is a company that typically has a large market cap, a sterling reputation, excellent financials, and many years of success in the business world. A blue-chip index seeks to track the performance of financially stable, well-established companies that provide investors with consistent returns.
Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.
Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more. Growth history. Blue-chips have a reliable, solid history of sustained growth and good future prospects.
The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN. They're much more volatile. Tesla, for example, is down about 23% so far this year.
By investing in blue-chip stocks, investors can build a well-diversified portfolio. Here, we have identified three stocks from the Retail - Wholesale sector — Walmart Inc. WMT, The Home Depot, Inc. HD and Costco Wholesale Corporation COST.
Fair Value Estimate for Ford Motor
With its 4-star rating, we believe Ford's stock is undervalued compared with our long-term fair value estimate. We are maintaining our fair value estimate at $19 per share.
Today, Amazon trades for 3.4 times sales and while that is a lot more expensive than it was, it's right in line with the historical average over the last 10 years. Amazon's revenue growth has returned to the double digits and given the recent bottom-line improvements, Amazon seems fairly priced today.
The largest single-day percentage declines for the S&P 500 and Dow Jones Industrial Average both occurred on Oct. 19, 1987 with the S&P 500 falling by 20.5 percent and the Dow falling by 22.6 percent. Two of the four largest percentage declines for the Dow occurred on consecutive days — Oct. 28 and 29 in 1929.
In summary, Nvidia, AMD, Micron, Taiwan Semiconductor, and Intel are strategically aligned with the future of technology, making them the top semiconductor stocks for 2024.
Are blue chip stocks good for retirement?
And the real benefit to these stocks is that they pay a dividend which increases your total return. Over time, a strong total return is the key to building wealth. Here are seven high-yield blue-chip stocks to help you meet your retirement goals no matter where you are on your investment journey.
Understanding a Blue Chip Stock
While dividend payments are not absolutely necessary for a stock to be considered a blue chip, most blue chips have long records of paying stable or growing dividends.
Expensive for Small Investors
Blue chip stocks can be extremely pricey for novice investors. Although they are uncommon, certain corporations do have low price per share values of $50 or less. Indeed, a lot of them have share prices of $100 or above.
Apple, AB InBev, and Johnson & Johnson may be the blue-chip stocks you have been looking to buy and hold to add that extra stability to your portfolio. AAPL, BUD and JNJ are three blue-chip stocks to buy and hold as they emerge as a beacon of stability in the wake of recent financial turbulence.
Costco Wholesale (NASDAQ:COST) stock continues to be one of the best blue-chip stocks investors can buy and remains the gold standard of the retail sector.
How do I invest in blue-chip stock? You can purchase blue-chip stocks through online brokerage firms or gain access to them through blue-chip funds. Given the high price-tag per share for some blue-chip stocks, some investors are opting to buy into these companies through fractional trading offerings.
These blue-chip stocks will continue to provide market-beating returns in April. Amazon Inc (AMZN): This tech behemoth is firing on all cylinders following its highest-ever monthly close. Netflix Inc (NFLX): The streaming giant is bolstering up its lineup with newly added premium tiers.
Common examples of blue chip stocks are market leaders like IBM, Coca-Cola, and McDonald's.
To get a sense of what that sort of underperformance looks like on an account statement, have a look at the chart below. This chart illustrates the disconcerting fact that if you invested $1,000 in Walmart stock 20 years ago, today it would be worth only about $4,400.
Shares don't seem expensive given the strong sales and earnings growth that Amazon is putting up. You can buy the stock for 3.3x revenue, which is still well below the pandemic-high valuation that investors saw in 2021. Brace for volatility ahead, but consider keeping Amazon in your portfolio for the long term.
Is Apple a good buy now?
Is AAPL a Buy, Sell or Hold? Apple has a conensus rating of Moderate Buy which is based on 16 buy ratings, 10 hold ratings and 1 sell ratings. The average price target for Apple is $202.76. This is based on 27 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
To be fair, it wouldn't be prudent to expect Ford to reach $100 anytime soon, and even Toyota Motors (TM) - which is the most valuable legacy automaker - has a market cap below $300 billion. Another analogy, however, could be the comparison with Tesla (TSLA), which currently has a market cap of around $700 billion.
Ford Motor's total debt for fiscal years ending December 2019 to 2023 averaged 132.8 billion. Ford Motor's operated at median total debt of 133.4 billion from fiscal years ending December 2019 to 2023.
The average price target represents 1.64% Increase from the current price of $13.41. Ford Motor's analyst rating consensus is a Hold. This is based on the ratings of 15 Wall Streets Analysts.
Instead, it's the stocks of mega-size companies – Alphabet (GOOGL), Amazon.com (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) – that have soared in price over the past year, propelling the broad market to double-digit returns.
