7 Blue-Chip Stocks to Buy After Last Month’s Massive Beating

  • When you think of blue-chip stocks, the first thing that comes to mind is a company with a strong financial performance. It is important to remember that these companies have been around for decades and have proven their worth in the market.
  • Home Depot (HD) -- Home Depot is the largest home improvement retailer in the United States. It offers customers home repair, construction, and landscaping services. Home Depot expects sales in 2022 to increase by approximately 3%. Meanwhile, earnings per share by mid-single digits.
  • Accenture (ACN) -- Accenture's stock has seen incredible growth since it started investing in acquisitions. It already spent $4.2 billion in the last fiscal year and is planning to spend another $4 billion this fiscal year.
  • McDonald's Corp. (MCD) -- Ray Kroc founded the company. He envisioned building a restaurant that served high-quality food at affordable prices to families from all walks of life, regardless of their economic status or age group. With inflation soaring, the time is ripe to invest in McDonald's since people will be flocking to their restaurants now more than ever.
  • Walt Disney Co. (DIS) -- Disney's success can be attributed to its ability to create innovative products that appeal to different audiences. The company has been able to constantly reinvent itself with new technologies and new ways of storytelling. During the Covid-19 pandemic, it pivoted towards streaming and gained handsomely. As resorts begin reopening, there are fresh reasons to invest in DIS stock.
  • American Airlines Group (AAL) -- Russia's invasion of Ukraine has increased oil prices, but the legacy carrier is battling well in these circumstances. Delta and United Airlines are struggling, but American Airlines is doing better than both on their 2019 Q2 schedule.
  • Shell (SHEL) -- Shell is one of the largest oil companies in the world. It's been in operation since 1907, producing several different products, including petrol, diesel, and heating oil. Shell is known to have one of the best safety records in the industry as well. It is also working on pivoting towards carbon-neutral initiatives to prepare for the future.
  • Monday.com (MNDY) -- Monday.com is an AI-powered platform that helps people easily manage their tasks, projects, and employees. It helps them ensure they are on top of everything in the company. With the rise of remote work, this is a company you cannot afford to ignore.
blue-chip stocks - 7 Blue-Chip Stocks to Buy After Last Month’s Massive Beating

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Overall, blue-chip stocks are ones that are considered to be the most valuable and reliable across the stock market. In turn, investing in blue-chip stocks is a popular way to make money.

There are many reasons for this, one of them being that they have been around for a long time and have been performing well. They also tend to be more stable than other stocks because they’re much less volatile than other companies.

However, the most important aspect of these stocks is that they can withstand any financial storm and continue to provide steady returns for investors.

Furthermore, blue-chip stocks are traditionally considered to have a high market capitalization, strong financial performance and stable growth rates.

So, with all of this in mind, I have selected seven blue-chip stocks that did not perform well in June. But, while having an off month in rough market conditions can be scary, these companies have a great record and tend to bounce back very quickly.

Now, let’s dive in and take a closer look at each one.

Ticker Company Price
HD Home Depot $288.57
ACN Accenture $275.87
MCD McDonald’s $254.03
DIS Disney $93.95
AAL American Airlines $13.40
SHEL Shell $48.36
MNDY Monday.com $110.76

Blue-Chip Stocks to Buy: Home Depot (HD)

the outside of a home depot store

Source: Jonathan Weiss / Shutterstock.com

Home Depot (NYSE:HD) is a retail home improvement store that provides a wide variety of products. The company was founded in 1978 and is one of the largest retail stores in the United States.

Home Depot has more than 2,300 stores in all of North America and employs more than 500,000 associates. Additionally, the company generated more than $150 billion in revenue worldwide last year, good for a 14% boost year-over-year (YOY). This growth comes as the home improvement business has been growing and will continue to grow with the recent rise in work-from-home jobs.

Of course, the recent pessimism surrounding mortgage rates has dampened the stock price, though. Undoubtedly, Home Depot is facing tough YOY comps, and rising interest rates do not help. But the company has shown the fundamentals to withstand tough economic conditions.

It has reported the latest quarterly results and a 3.8% increase in revenues. Net earnings saw a 2.07% rise, too. These are not numbers to write home about. While the company might have a tough year in revenues, investors should expect these numbers because things are returning to normal. People aren’t spending as much time outside their homes; It will be a couple of quarters before things are in balance.

Meanwhile, it has been paying dividends for more than 30 years and hasn’t reduced its dividend rate in those three decades. In turn, that will keep investors happy while they wait for revenues to return.

Accenture (ACN)

A photo of the Accenture (ACN) logo in silver and white on a silver, reflective wall outside a building.

Source: Tada Images/ShutterStock.com

Accenture is one of the most highly-respected global management consulting, technology services and outsourcing companies with a long history. Ir provides various value-added solutions for businesses to improve efficiency and innovation.

It is one of the largest consulting firms in the world and has 710,000 employees. The company offers a wide range of services to help organizations improve performance and create a competitive advantage.

Accenture has been providing digital transformation services for various companies across the globe. It has been using its AI-powered platform to help companies with their content marketing strategies.

Furthermore, Accenture is a company with a lot of good qualities to it, such as quickly adjusting to changing trends in the market and showing high consistency in achieving good results. It also has an excellent balance sheet, a testament to the management’s fiscal discipline.

Revenue in the latest quarter was $16.2 billion, way beyond what analysts had expected. With that, Accenture forecasts revenue from $15 billion to $15.5 billion for the current quarter.

Overall, Accenture offers many great services that are crucial to today’s world. And even though the company is doing well now, it will only continue to grow its services — making it a great pick for the future.

Blue-Chip Stocks to Buy: McDonald’s (MCD)

A McDonald's (MCD) burger box and fries rest on a flat surface.

Source: 8th.creator / Shutterstock.com

McDonald’s (NYSE:MCD) is an American fast-food restaurant chain with a worldwide presence.

The company’s history started in 1940 when the first McDonald’s opened in San Bernardino, California. The company’s founder, Ray Kroc, was a salesman from Illinois who had become successful in the restaurant business. He made his way to California and discovered that there were no restaurants that served high-quality burgers and fries at a low price. Kroc soon found out that he could use his experience to open his restaurant that would have some of the features he admired about the drive-in restaurants he had seen on one of his trips to southern California.

McDonald’s has been one of the most successful companies in recent history, and it is one of America’s favorite brands. The success of McDonald’s is largely due to its ability to adapt to changes in society and culture. The company has created new products while keeping its core products on offer, like the Big Mac and fries.

McDonald’s has been successful in the past 50 years because it has managed to keep up with the changing times. Recent investments in technology, such as mobile ordering and delivery, allow the company to focus on bettering its digital offerings.

The increasing popularity of digital orders during the pandemic cannot be ignored by McDonald’s, and it needs to find ways to keep up. Digital sales increased 60% in 2021, which is essential for its future success. Other than that, the brand speaks for itself.

Disney (DIS)

an image of mickey mouse on a yellow background to represent disney (DIS)

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Disney (NYSE:DIS) is a world-renowned company that has been around for decades. It is known for its movies, theme parks, and more.

Walt Disney has become one of the world’s most powerful media and entertainment companies. Just some of its great achievements include ABC and ESPN. It owns many other important holdings like Disney World, Disney+, Hulu, etc.

Disney is one of the most diversified companies in the world. It has a portfolio that includes theme parks, television networks, merchandise licensing, video games, and movie studios.

At any particular time, Disney will have one division doing particularly well. During Covid-19, streaming picked up because of people sheltering in. The Walt Disney Company reported that its entertainment and tech platform, Disney+, had 137.7 million subscribers worldwide as of Q2. There are reasons to be cheerful-Disney Plus announced that it gained 7.9 million new subscribers during Q2. At a time when Netflix (NASDAQ:NFLX) is losing subscribers, this is music to investors’ ears.

At the same time, you cannot ignore Disney theme parks, resort hotels, and cruise ships. That business segment will return this year, providing additional cushion to its bottom line.

Blue-Chip Stocks to Buy: American Airlines (AAL)

An American Airlines (AAL) airplane waiting on the tarmac. Represents airline stocks.

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American Airlines (NASDAQ:AAL)  is an American airline company founded in 1930. The company’s headquarters are located in Fort Worth, Texas.

American Airlines is the world’s largest airline, with a fleet of more than 900 aircraft and counting! Revenue-wise, they are unmatched as well.

American Airlines struggled during the pandemic like the rest of the airline sector. However, things have begun to return to normal, and you can see that in the TSA checkpoint travel numbers. AAL benefits from the trend, and March was the first month since Covid swept through that its revenue surpassed 2019 levels. The airline is flying almost all the flights on its 2019 Q2 schedule. It is doing better than Delta and United Airlines.

However, AAL, one of the largest airlines in the world, has had a tough quarter. Despite doubling revenue from the same time last year, it posted a net loss. American Airlines said it paid $2.80 a gallon for fuel in Q1, a big jump of 65% year on year. So it’s not like AAL is completely out of the rut. However, it is in a much better position than it was just a couple of years back.

Shell (SHEL)

The Royal Dutch Shell (RDS.A, RDS.B) logo on a gas station in Iceland.

Source: JuliusKielaitis / Shutterstock.com

Shell (NYSE:SHEL) has been a multinational oil and gas company in the industry for over 100 years.

In addition to exploring for and producing crude oil and natural gas, Shell manufactures products such as liquefied natural gas (LNG), gasoline, diesel fuel, jet fuel, petrochemicals, hydrogen, and electricity.

Interestingly, as Shell moves away from fossil fuels, it is now investing in renewables and carbon capture. This requires massive capital investments. Therefore, Shell’s valuation will come under pressure for the foreseeable future. But in the long run, it will help the supermajor energy company because the general trend is toward a carbon-neutral future.

More than 100 countries have signed the newly formed Global Alliance for Zero Emissions by 2050. It’s the largest coalition in this area to date and an important step in working towards achieving net-zero emissions by 2050.

Companies that align with these goals will be better positioned for the future. Shell is a good example of this.

Blue-Chip Stocks to Buy: Monday.com (MNDY)

Monday.com (MNDY) logo displayed on smartphone held by two hands

Source: shutterstock.com/monticello

Monday.com (NASDAQ:MNDY) is a project management software for teams of all sizes. It is designed to help teams work together more efficiently and get more done in less time. The platform helps with collaboration and communication, making it easy for teams to plan, manage, and track progress on any project or initiative.

With Monday.com you can create custom templates that allow you to focus on the things that matter most to your team while letting Monday take care of the rest. Users can collaborate with their team members in real-time across different devices and work seamlessly with clients, vendors, and partners through secure access without any IT headaches.

Monday.com is a project management software that helps teams collaborate and manage projects. It provides tasks and time management software, Gantt charts, Kanban boards, calendar integration, etc.

On May 16, the project management company announced a healthy 84% increase in revenue. Revenue of top-tier customers increased 2 fold, while Net Dollar Retention (NDR) grew 150% year over year among customers with more than $50K ARR.

For the fiscal year 2022, Monday.com has projected total revenue between $488 million and $492 million. This represents year-over-year growth of 58% to 60%.

Monday.com is one of the fastest-growing B2B brands as it has barely scratched its potential as a revenue-generating brand. It sees an addressable market size of $87.6 billion by 2024 making it a great pick for the future.

On the publication date, Faizan Farooque 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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


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