Make money by identifying growth stocks, companies poised to grow faster than the market or average business in its industry. Pharmaceutical company AbbVie Inc is a blue chip stock, although shares of the maker of the rheumatoid arthritis drug Humira have performed poorly in 2023. Have a look at the chart below to see hedge funds’ 21 top blue chip stock picks as of the end of Q2. Blue chip stocks, thanks to their massive market capitalizations and deep liquidity, are a natural home for hedge funds and other large pools of institutional capital. Blue chip stocks dominate the list of hedge funds’ most popular equity investments.
What are the benefits of investing in blue chip stocks?
What’s interesting about the latest data is how hedge funds collectively piled into a number of Magnificent 7 stocks. We won’t know how hedge funds are dealing with the current market environment until they disclose their second quarter buys and sells in mid-November. But we do know what they were up to in Q2 thanks to a recent batch of regulatory filings.
All this information enables you to make informed investment decisions. While the company’s valuation has sometimes fluctuated in conjunction with volatility in the broader market and business-specific developments, the tech giant’s stock has been an excellent performer for long-term investors. Apple has been among the largest public companies for a long time, and the business still has room for growth over the long term. Blue chip stocks are the stocks of well-known, high-quality companies that are industry leaders. These companies have stood the test of time and are respected by their customers and shareholders. Blue chip companies have solid business models and impressive records of returns for investors.
Blue-Chip Stock #4: Perrigo Company plc (PRGO)
- MPLX maintained a healthy consolidated debt to adjusted EBITDA ratio of 3.1x and a solid distribution coverage ratio of 1.5x.
- If you’re looking for maximum growth in your stock investments, you’ll also want to look beyond blue chip stocks at some up-and-coming small-cap stocks of innovative young companies seeking to disrupt their larger rivals.
- Think Apple’s VR headset and Watch or Nike’s collaborations and new shoe technology.
MPLX maintained a healthy consolidated debt to adjusted EBITDA ratio of 3.1x and a solid distribution coverage ratio of 1.5x. The recently acquired assets in the Utica and Permian basins have begun to generate cash flows. Fresh breads, buns, rolls, and tortillas make up about a three-fourths of the business, with sales channels for the company split between Supermarkets, Mass Merchandisers, Foodservice, and Convenience Store. Pfizer Inc. is a global pharmaceutical company focusing on prescription drugs and vaccines.
Johnson & Johnson (JNJ)
- But we do know what they were up to in Q2 thanks to a recent batch of regulatory filings.
- Our editors are committed to bringing you independent ratings and information.
- But the more you want to preserve and protect the money you have invested in the stock market, the more attractive blue chip stocks will be as you try to meet your objectives and reach your long-term financial goals.
- Those younger age demographics are driving account registrations and accounting for a third of overall spending through the AmEx network.
The company generated $70 million in operating cash flow but faced a 44% decline in operating profit, reaching $33.1 million, as ongoing cost pressures and lower volumes in EMEA and JAPIC weighed on margins. Net income dropped to $17.2 million from $35.8 million in Q3 2023, while diluted EPS fell 53% to $0.97. The 7 best blue chip stocks as ranked using data from the Sure Analysis Research Database (excluding REITs and MLPs) are analyzed in detail below. Blue-chip stocks are established, financially strong, and consistently profitable publicly traded companies.
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While blue-chip companies have built reputations for reliably increasing sales and earnings over the long term and delivering strong returns for shareholders, investing in these stocks still comes with risks. Despite enjoying many competitive advantages, it is still possible for these companies to lose market share to rival players. In some cases, new innovations may even completely disrupt the business models of blue chip companies. Stable and reliable, having a blue chip stock in your portfolio is not likely to be a bad thing. This stability points to strong financial footing, meaning no debt and a lot of efficiency.
On August 7th, 2025, Cogent Communications reported Q results for the period ending June 30th, 2025. Service revenue declined slightly to $246.2 blue chip stock list million, down 0.3% sequentially and 5.5% year-over-year, mainly due to continued weakness in enterprise and off-net services. Cogent Communications Holdings (CCOI) was founded in 1999 on the premise that bandwidth can be treated and sold like a commodity.
However, the IRA Medicare Part D Redesign is resulting in higher discounts. Global Biopharmaceuticals sales climbed 10% led by an increase in Primary Care (+12%), SpecialtyCare (+7%), and Oncology (+11%). Big-time investors are willing to pay up for complicated strategies offering exposure to uncorrelated assets. So it’s not necessarily possible to tell from the outside if a hedge fund is providing its clients with the performance they expect. Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial.
The company reported a net loss of $1.21 per share, wider than the $1.09 loss in Q1. LyondellBasell sells products in more than 100 countries and is the world’s largest producer of polymer compounds. The company, with U.S operations headquartered in Houston, Texas and global operations headquartered in London, generated $40.3 billion in sales last year. For the quarter, Branded Retail sales improved 5% to $826.7 million as declines in pricing (-1.5%) and volumes (-1.3%) were offset by a strong contribution from Simple Mills (+7.8%).
The (Steady) Rise of Blue Chip Stocks
Coca-Cola (KO -1.35%) has been a leader in the beverage industry for more than a century, with its namesake soft drink spawning a global empire. Yet, Coca-Cola has also changed with the times and now provides a much broader array of products, including juices, sports drinks, and bottled water tailored for more health-conscious consumers. Alternatively, blue chip ETFs can offer a narrower concentration of high-quality stocks than an S&P 500-tracking ETF or a Nasdaq-tracking ETF.
Johnson & Johnson
As with prior periods, the improvement in revenue was mostly due to SJW Group’s California and Connecticut businesses, which benefited from higher water rates, while growth in customers aided the Texas business. The Consumer Self-Care International segment includes branded consumer healthcare business primarily in Europe, but also Australia and Israel. It operates in the healthcare sector as a manufacturer of over-the-counter consumer products. While third-quarter net sales fell to $306.9 million from $319.9 million in 2023 due to a retail calendar shift, adjusted figures showed a 2.2% year-over-year increase.
That’s because these companies are predicted to have a bright future, whether through new products or inventions. Think Apple’s VR headset and Watch or Nike’s collaborations and new shoe technology. If you’re looking for dividend payouts and steady growth, blue chip stocks could be perfect for your portfolio. Yes, blue chip stocks can lose value, especially during market corrections or economic downturns. However, their strong fundamentals typically make them more resilient and quicker to recover compared to less established companies. Berkshire Hathaway is the only blue chip stock on this list that doesn’t pay a dividend.
“Despite the challenges from a bear market, hedge funds delivered resilient performance in 2022,” notes Barclays Capital Solutions. “In a year when the MSCI World Index fell 18%, hedge funds captured only a fraction of the drawdown, thus offering the best downside protection since the dot-com bubble burst.” Yet there’s still something irresistible about knowing what hedge funds have been up to. And even if the industry tends to generate disappointing returns, you’ve got to give it credit when credit is due.
Investors of all experience levels can appreciate the general stability and reliability that blue chip businesses offer shareholders. Many of these companies pay great dividends and have payout growth streaks that have earned them a spot among the illustrious ranks of the Dividend Kings, companies that have increased their dividends for at least 50 years. Coca-Cola is the quintessential blue chip stock, a drinks company that has demonstrated decades of consistent dividends and stable performance.
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