SPECIAL REPORT The Top 7 Stocks for 2024

7 Blue-Chip Stocks That Will Outlast Any Market Downturn


  • With the market convulsing on various worrying economic data points, these are the blue-chip stocks that command strong conviction to ride any storm.
  • Alphabet (GOOG, GOOGL): Representing one of the most powerful brands in the world, Alphabet features extensive technological and social networks, making it unstoppable.
  • Ferrari (RACE): A similar concept to investing in fine art, the exclusivity of the Ferrari brand makes RACE one of the most economically insulated blue-chip stocks.
  • Mastercard (MA): Though a cynical argument, the compromised financial profile of U.S. households might spell increased demand for Mastercard’s credit programs.
  • Kimberly-Clark (KMB): The shortage of feminine hygiene products demonstrates the always-relevant influence of consumer goods giant Kimberly-Clark.
  • Shell (SHEL): One of the biggest blue-chip stocks in the hydrocarbon business, the present geopolitical paradigm shift has likely made Shell permanently relevant.
  • American Tower (AMT): An infrastructure play pivotal to the 5G rollout (and any future telecom rollouts), American Tower is a set-it-and-forget-it type of investment.
  • Corteva (CTVA): The only agriscience firm among blue-chip stocks dedicated purely to agriculture, Corteva is essentially a name to keep for life.
Blue-chip stocks - 7 Blue-Chip Stocks That Will Outlast Any Market Downturn

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As the equities sector shakes violently from myriad economic headwinds, investors committed to staying in the market should go with the obvious approach: powerful and relevant blue-chip stocks to buy that will outlast any market downturn. Essentially, the largest and most-established firms are comparatively the most insulated from outside pressures.

To be sure, small-capitalization firms offer the most bang for the buck, driving massive upside potential due to a long runway for growth. However, such entities are largely unproven, meaning that the probability for profitability is typically limited. On the other end of the spectrum, blue-chip stocks to buy don’t offer mind-blowing returns, but they’re likelier to facilitate a relatively positive experience.

As well, companies with large war chests tend to have powerful brands, enabling them to dominate their underlying industries. Plus, some of the best blue-chip stocks to buy are levered to relevant sectors that naturally weather economic downturns due to their secular demand profile.

Of course, no investment category is perfectly immune from red ink, especially if we suffer a severe recession. Still, if you want to stay in the market, your best chances for success are usually with blue-chip stocks to buy.

GOOG, GOOGL Alphabet Inc. $2,241.87, 2,235.87
RACE Ferrari N.V. $184.65
MA Mastercard Incorporated $317.76
KMB Kimberly-Clark Corporation $124.96
SHEL Shell plc $52.64
AMT American Tower Corporation $247.31
CTVA Corteva, Inc. $55.34

Blue-Chip Stocks to Buy: Alphabet (GOOG, GOOGL)

Alphabet Inc. (GOOG, GOOGL) and Google logos seen displayed on smartphones
Source: IgorGolovniov / Shutterstock.com

Though Alphabet (NASDAQ:GOOG, GOOGL) has been at the center of controversy for issues such as political bias and online privacy concerns, the overriding reality is that the company through Google owns one of the biggest brands in the world. In fact, Alphabet ranks number eight in the Fortune 500, making it one of the unstoppable blue-chip stocks to buy.

For one thing, the company essentially owns the internet. Google commands over 92% of the search engine market, meaning that all of its downwind platforms enjoy strong advertising revenue potential. If any business is to succeed online, it’s got to carry a high Google page ranking.

Second, Alphabet has its hands across several innovative industries, such as machine learning and automated driving via its Waymo arm. While GOOG has been a poor performer this year – shedding double digits since the start of January – consumers have become too dependent on Google. With other products coming down the pipeline, this is a name that’s not going anywhere, irrespective of the economy.

Ferrari (RACE)

A close-up of the Ferrari logo on a red car with drops of water
Source: Konstantin Egorychev / Shutterstock.com

Arguably the most popular brand within the exclusive exotic car category, Ferrari (NYSE:RACE) is an iconic name among blue-chip stocks to buy. Much of that has to do with the company’s mystique. Unlike most other auto manufacturers, Ferrari choose its customers, not the other way around. Therefore, you must earn your right to own a car delivered by the Prancing Horse.

While RACE stock administratively is like any other publicly traded security, in some sense, the underlying business is non-fungible. Under this context, Ferrari is akin to investing in fine art, which is appealing precisely because of its non-fungible nature; that is, no one artwork is the same (interchangeable) as another.

By logical deduction, you must pay top dollar for such desirable exclusivity, meaning that those who acquire either Ferraris or art masterpieces must have the funds to do so. RACE is thus incredibly appealing ahead of a possible downturn as it offers insulation from turmoil.

Blue-Chip Stocks to Buy: Mastercard (MA)

Close up of a pile of mastercard credit load debit bank cards.
Source: David Cardinez / Shutterstock.com

With 231 million cardholders, Mastercard (NYSE:MA) is the second-largest credit card network in the U.S. At face value, this stat doesn’t seem to support the narrative for MA as one of the blue-chip stocks to buy. During a recession, household spending declines – that’s basically the point. Therefore, the reduction of volume wouldn’t ordinarily be helpful for credit-issuing organizations.

But if you consider the broader narrative from a cynical perspective, Mastercard may be poised to perform well in an upcoming bearish cycle. As I mentioned a few weeks ago in a Barchart.com article, Americans are entering a possible recession with massive debt, to the tune of $841 billion.

Here’s the kicker. Just before the coronavirus pandemic, U.S. households accrued a record credit-card balance of $930 billion. Therefore, the mere 10% improvement in liability mitigation despite the influx of government handouts suggests that the American consumer is approaching a possible recession with a compromised financial profile.

That’s going to mean stretching dollars, something that Mastercard enables.

Kimberly-Clark (KMB)

Kimberly Clark (KMB) sign, positioned outside the world headquarters’ main entrance.
Source: Trong Nguyen / Shutterstock.com

When faced with the prospect of an economic disruption, you really can’t go wrong with blue-chip stocks tied to the consumer staples sector. Encompassing products that people need no matter the state of the economy, people usually think of the basics like food and water. However, this industry also includes personal care products, which is where Kimberly-Clark (NYSE:KMB) enters the frame.

As you may have heard, 2022 is following up the toilet paper crisis of 2020 with a shortage of feminine hygiene products. Word on the street is that at least some consumers are wising up to the inflationary trend, thus buying products with long shelf lives today to avoid even higher prices tomorrow. It’s astute but it’s also creating hardships for other women, not to mention exacerbating social equity concerns.

Still, the beneficiary in all this is Kimberly Clark. With the dynamics of the day fostering bull markets in everyday mundane products, KMB is easily one of the blue-chip stocks to buy.

Blue-Chip Stocks to Buy: Shell (SHEL)

The Royal Dutch Shell (RDS.A, RDS.B) logo on a gas station in Iceland.
Source: JuliusKielaitis / Shutterstock.com

A stalwart in the hydrocarbon business, Shell (NYSE:SHEL) is profiting handsomely from the current energy crisis. Though an obvious culprit is Russia’s invasion of Ukraine, the reality is that the Kremlin didn’t help matters but it wasn’t the sole catalyst for the boon in fossil fuels. Like anything, the explanation is complex.

Mainly, the crisis had its origins in the price of oil briefly slipping into negative territory. Back then, big oil represented blue-chip stocks to avoid because of the industry’s catastrophic damage. As demand came back, producers understandably didn’t want to invest too heavily into additional projects. Further, President Joe Biden’s implied threat to oil firms’ high profit margins basically knocks the incentivization out of future oil investments.

In other words, we might be stuck with the current oil market’s global supply profile. And here’s where Russia comes into play: sanctions have effectively shelved much of this supply so the profile is even smaller. Thus, Shell is poised to continue benefitting from this cynically fortuitous dynamic.

American Tower (AMT)

A magnifying glass zooms in on the American Tower (AMT) website.
Source: Pavel Kapysh / Shutterstock.com

A global provider of wireless communications infrastructure and next-generation wireless technologies, American Tower (NYSE:AMT) is easily one of the best blue-chip stocks to buy as we navigate these troubled waters. Structured as a real estate investment trust (REIT), American Tower provides regular dividend distributions to stockholders. Given the debilitating impact of inflation and the loss of purchasing power, passive income has become fundamentally pertinent.

In addition, the company owns what is likely a permanently relevant business model. By managing wireless infrastructure networks, AMT works behind the scenes to ensure the 5G rollout. Since technology stops for nothing, the company presents a relatively trustworthy investment.

As well, further down the line, we will integrate new telecom technologies such as 6G, which might launch commercially in 2030. Therefore, whether you’re seeking an investment to guide you through the next year or the next decade, AMT is almost a no-brainer among blue-chip stocks to buy.

Blue-Chip Stocks to Buy: Corteva (CTVA)

A Corteva (CTVA) sign in Indianapolis, Indiana.
Source: Jonathan Weiss / Shutterstock

When assessing the best opportunities to hedge against a global recession, boring tends to be a solid attribute. With Corteva (NYSE:CTVA), you get quite a snoozer of an investment but also one that’s powerfully relevant.

According to its website, Corteva is the only major agriscience firm dedicated purely to agriculture. Through the combined acumen of DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences, Corteva provides the most complete portfolio in the underlying industry, delivering a balanced and globally diverse mix of seed, crop protection and digital innovation.

While agriculture doesn’t generate the sexiest headlines, experts in the field suggest that the global agricultural market could expand to $18.8 trillion by 2026. Presently, the sector valuation stands at approximately $12.5 trillion. Therefore, just based on industry growth projections, CTVA stock is well positioned.

However, with the geopolitical environment threatening ongoing food shortages, the agricultural segment is only rising in relevance. Therefore, Corteva appears a smart bet among blue-chip stocks to buy.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/06/7-blue-chip-stocks-to-outlast-any-market-downturn/.

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