It’s hard to think about buying when the market is in hysterics, but bear markets can create lots of long-term opportunities for patient investors. The COVID-19 sell-off knocked down valuations for many of the best blue-chip stocks on the market, so now could be a great time to build positions in your favorite companies. There’s no telling how long it will take for this correction to run its course, but you can be ready for the rebound by identifying your top buy candidates in advance.
Best Bluechip Stocks
These stocks are down significantly over the past few weeks and so are their valuations. As a result, these bluechip stocks are significantly better values than they were just a few weeks ago. Add them to your watchlist now and get ready to pounce in case the market starts to come back.
Apple is one of the most valuable companies on the planet for good reason. This company has over $207 billion in cash on hand. With reserves like that, Apple is well-equipped to handle an economic downturn.
Unfortunately, profits are definitely going to take a hit next quarter. COVID-19 wreaked havoc on Apple’s supply chains in Asia, and Apple closed all of its retail stores to help curb the spread of the virus. Apple while probably miss its earnings estimates this quarter, and share prices could go down even further.
Apple is a great long-term holding, but don’t jump in too early. The stock market is overwhelmingly bearish right now, so there’s a good chance that Apple shares will be even cheaper in the near future.
Microsoft is another one of the country’s leading tech stocks, but it might fare better during a downturn than Apple. A large portion of Microsoft’s revenue comes from cloud-based services, so the COVID-19 disruptions shouldn’t hit Microsoft as hard as it will other companies. In fact, the massive influx of remote workers could give Microsoft’s cloud business a boost this quarter.
Despite solid financial footing, Microsoft is down with the rest of the market this year. However, it could go up quickly if the market starts to turn optimistic. Antitrust officials are taking a close look at most of the big tech companies, but Microsoft isn’t on their hit list. Plus, Microsoft’s Azure cloud business is starting to take market share from Amazon Web Services, so profits could continue to grow despite a likely recession.
If you can get Microsoft while it’s close to its bottom, it’s likely to be an excellent investment for years to come. Keep a close eye on this one.
Disney has been a Dow component since 1991, and it’s one of the best bluechip stocks money can buy. Unfortunately, Disney had to shut down most of its major parks due to the risk of spreading COVID-19, but this company still has a lot going for it.
In addition to its parks and other properties, Disney is a blockbuster film-making machine. It controls some of the most valuable intellectual properties in show business, including Star Wars and Marvel Universe. Just last year, Disney launched its new streaming service, Disney Plus. With millions of people sitting in their homes because of government restrictions, Disney could generate a lot of revenues from digital movie sales and streaming subscriptions.
If the economy goes into recession, Disney’s media business could help it weather the storm. An economic downturn would likely hurt park attendance, but Disney’s other revenue streams could pick up the slack. In the long-run, this company will be just fine.
Chase is the undisputed king of the bank stocks. Despite historically low interest rates, the company consistently grew profits and revenues over the past few quarters. However, a recession is probably just around the corner, and a widespread economic downturn could have a major impact on a massive financial institution like Chase. Interest rates are practically zero, so Chase will have a hard time maintaining solid growth through a slowdown.
However, Chase is probably a good buy candidate as a long-term investment. It’s the leading U.S. bank, and it has one of the best strongest management teams in finance. Chase is one of the best bluechip stocks for a reason. It survived the depression and the ’09 financial crisis in one piece, and it’s a major player on the global financial stage. In terms of business fundamentals, you can’t beat Chase as a long-term holding.
Even the major credit card stocks are taking a beating from COVID-19. However, Visa’s core business could get a lift from the coronavirus restrictions. After all, Visa gets paid transaction fees whenever someone uses one of its cards. Millions of people are stuck in their homes and many of them are shopping online. If they have to shop in person, many consumers are paying with their cards in order to avoid handling cash.
Thousands of people have tried new online delivery services since the outbreak began. Statistics suggest that many of these first-time shoppers will keep using these online services once the outbreak is over. Many online shoppers will pay with a Visa card, so the increase in online sales volume could benefit Visa in the long-term.
However, there’s a high likelihood that overall consumer spending will be down significantly as a result of the outbreak. Visa earnings will almost certainly take a hit this quarter, so there could be more pain ahead for shareholders.
Restaurants across the country are closed due to COVID-19, and McDonald’s had to restrict its operations to drive-through and takeout. However, McDonald’s could bounce back faster than other restaurant stocks once the restrictions are lifted. McDonald’s emphasizes affordability and convenience, so it’s one of the most recession-resistant restaurant stocks on the market.
When the economy slows down, many Americans start to cut back on eating out. However, McDonald’s fared better than other fast-food stocks during the last recession. Sometimes, an economic downturn will actually cause more people to eat at value eateries like McDonald’s as a cheaper alternative to higher-end restaurants.
Fast food definitely isn’t as exciting as cloud services or fintech, but it’s a tried and true business with a massive consumer market. After all, everyone has to eat, so the food industry is particularly recession-resistant
More Cheap Bluechip Stocks
These bluechip stocks would make great additions to any portfolio, but timing is everything during a bear market like this. Don’t jump into a trade just because you see the price went down so many points. You need to be patient and, most important, objective. Don’t let your bias pull you into a bad trade. Always do your due diligence by analyzing charts, financial data, and analyst reports so you know what to expect before you start building a position.
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