Blue-chip corporations are well-established, large-scale businesses having a track record of consistent financial performance over time. According to JP Morgan Chase experts, these equities have the ability to hold their value during periods of economic uncertainty while also providing substantial returns when the economy is doing well. The crisis between Russia and Ukraine has sparked inflation, prompting the US Federal Reserve to tighten its monetary policy. The rise in interest rates has a negative impact on high-growth stocks. Investing in blue-chip stocks provides a safety net during economic downturns.
Insider Monkey takes a look at 10 undervalued blue-chip stocks to buy now. Alcoa Corporation is a bauxite, alumina, and aluminum producer based in Pittsburgh. Aluminum appears to be in high demand as electric vehicles employ it to cut weight. The company’s stock is currently trading at a 44 percent discount, making it very undervalued. Micron Technology, Inc. is a memory and storage devices firm based in Boise, Idaho. Dynamic random-access memory (DRAM), flash memory, and USB flash devices are among the company’s products. For investors searching for a bargain in the mid 60s, analysts are thinking along the same lines as C.J Muse at Evercore ISI. The American International Group, Inc. is a global diversified insurance corporation with operations in 80 countries and 49,600 employees. The stock is currently selling at a forward adjusted P/E multiple of 11.02x, which is 7.4% lower than its five-year average. Nutrien Ltd. expects EPS in the range of $16.20 to $18.70 in FY22. Since September 2020, the price of fertilizers has more than doubled. Natural gas costs are an important raw ingredient in the fertilizer industry. Microsoft Corporation is a Redmond, Washington-based technology company that makes and sells consumer electronics, computers, and software. Microsoft Corporation’s cloud revenue increased by 29% year over year to $19.1 billion in Q3 FY2022. For more information, click 10 Undervalued Blue-Chip Stocks To Buy Now.
