5 Top Blue Chip Stocks to Buy Now

The stock market wasn’t kind to investors in May, with the major indexes taking a tumble. But if you think this is a sign the bull market is over and that you should “sell in May and go away,” think again. The recent correction on Wall Street provides a big buying opportunity in a number of fundamentally superior U.S. companies.

In fact, I believe the “euro crisis” centered in Greece and China’s recent inflationary boom both present more benefits than challenges for investors, at least in the longer term. Troubles elsewhere have been driving buying pressure behind stable American blue chip stocks, as well as supporting the U.S. bond and currency markets. This has provided a measure of stability for investors — as well as big profit opportunities in stocks that just showed their strength after earnings.

Here are five booming blue chip stocks that will provide stability to your portfolio in the short-term and big profits in the months ahead.

NEXT – Blue Chip Stock to Buy #1

Blue Chip Stock to Buy #1 – AmerisourceBergen Corp.

AmerisourceBergen Corp. (NYSE: ABC) is a Pennsylvania-based company that acts as an intermediary between pharmaceutical companies and health care providers such as hospitals and drugstores that dispense drugs. The company operates mostly in Canada and the United States, distributing both prescription and over-the-counter drugs, as well as some medical supplies.

This recession-proof business hasn’t missed a beat in the last year and has recently gained even more momentum due to health care reform measures that would broaden drug coverage. ABC has grown its earnings for each of the last four consecutive quarters and has topped Wall Street expectations in each of those periods by an average of almost 12%. That’s fundamental strength unmatched by other health care blue chips.

NEXT – Blue Chip Stock to Buy #2

Blue Chip Stock to Buy #2 – Hospira, Inc.

Illinois health care company Hospira, Inc. (NYSE: HSP) is another great blue chip stock to buy. HSP stock was spun off from drug stock Abbott Laboratories (NYSE: ABT) and makes specialty injectable pharmaceuticals (primarily generics) and other drug delivery-related equipment. Almost half of Hospira’s sales are to group purchasing organizations (GPOs), including Premier, Broadlane and Novation, which means it can see a sales windfall in a hurry by virtue of a big order.

As with ABC, health care reform has been kind to Hospira. The company’s latest earnings report at the end of April blew away forecasts by more than 30%. That would be impressive enough, but it’s the fourth-straight earnings surprise of over 20% for HSP stock. Investors can rely on earnings strength like that in any market.

NEXT – Blue Chip Stock to Buy #3

Blue Chip Stock to Buy #3 – Colgate-Palmolive

U.S. blue chip Colgate-Palmolive Company (NYSE: CL) needs no introduction since it is the top seller of toothpaste and a world leader in oral care products. The company also makes personal care items that include deodorants, shampoos and soaps, as well as household cleaners and pet nutrition products.

Colgate has grown both its revenue and sales for each of the last four consecutive quarters and is ready for another strong showing on July 29 when it releases its next earnings report. Shares have drifted downwards in May with the broader market, but this presents an excellent buying opportunity for investors ahead of their earnings report. I expect CL stock to bounce back nicely after releasing its numbers this summer.

NEXT – Blue Chip Stock to Buy #4

Blue Chip Stock to Buy #4 – Express Scripts

Express Scripts, Inc. (NASDAQ: ESRX) is St. Louis-based provider of pharmacy benefit management services across North America. Some of its customers include third-party administrators, health insurers and employers. Besides providing customers with home delivery, benefit design consultation and disease management services, it also provides various specialty services like patient care and even marketing.

As the need for prescription drugs has increased due to expanded drug coverage, ESRX has shown strength over the last several months. On April 27, Barclays Capital upgraded the stock, and back in February, Caris & Company initiated coverage with a buy rating. I expect further success from this stock — buy it now.

NEXT – Blue Chip Stock to Buy #5

Blue Chip Stock to Buy #5 – Seagate Technology

Seagate Technology (NASDAQ: STX) is a leading manufacturer of hard drives used in a wide variety of gadgets from personal computers and consumer electronics to high-end servers and mainframes. About two-thirds of Seagate’s sales are to computer hardware manufacturers, which include Hewlett-Packard, Dell, EMC, IBM and Sun Microsystems, while distributors and retailers account for the rest.

Seagate has seen dramatic earnings growth across the last four consecutive quarters, coupled with four straight earnings surprises by as much as 150%. This company has the fundamentals necessary to succeed in any market, and it is a great investment after the recent market correction.