It’s wise to always be on the lookout for the best blue-chip stock bargains.

In the stock market, prices surge and plummet with every passing headline. It’s easy to overlook the key gems that lie beneath the surface. As investors chase the next big thing, seasoned experts understand the art of patience and the thrill of discovering undervalued stocks.

The article lists seven industry giants that offer products and services that have become integral to our daily lives. But what happens when these behemoths, against all odds, hit rock-bottom valuations? That’s when the intelligent investor scoops up the best blue-chip stock bargains out there.

Fundamentally, these companies are executing strategic shifts that could set them on a trajectory of resurgence and value creation.

It is unraveling its strategic triumphs amidst all-time lows to showcase opportunities for those who dare to see beyond the numbers and find the best blue-chip stock bargains.

AT&T (T)

AT&T (NYSE:T) will breed long-term value creation through strategic efforts in its wireless and fiber businesses.

AT&T’s focus on postpaid phone ads, low churn, increased average revenue per user, and profitability growth has yielded significant gains in the wireless segment.

Over three years, the company added 8.3 million postpaid phone net adds, improved its market share and wireless service revenue share compared to the industry leader, and reduced churn by 28 basis points.

These metrics indicate customer satisfaction and loyalty. AT&T’s wireless service revenues grew by about $2 billion (15% increase) in three years, driving profitability.

In the fiber business, AT&T’s investments have led to exceptional growth, with over $3.4 million in AT&T fiber net additions in the past three years. Also, the company’s penetration rate of about 38% underscores its ability to succeed against competitors. 

Finally, the shift to fiber has driven broadband ARPU up by more than $10. It showcases the value customers see in AT&T’s offerings.

The company has taken disciplined cost savings initiatives that have improved margins, focusing on simplifying the business and enhancing efficiency. Right now, this is one of the best blue-chip stock bargains that won’t last.

Verizon (VZ)

Verizon (NYSE:VZ) may yield long-term benefits based on its strategic moves and robust performance metrics.

The company’s consumer wireless strategy, marked by segmentation and financial discipline, has yielded positive results. It includes YoY growth in postpaid phone gross adds, lower promo upgrade levels, and improved postpaid churn. 

Further, the launch of myPlan, a tailored offering, has encouraged customers to opt for premium plans, driving higher average revenue per account.

Verizon’s focus on private networks is evident in securing contracts with the US Department of Veterans Affairs, reinforcing its position as a trusted partner to enterprises and government agencies.

Verizon’s broadband strategy has achieved remarkable growth in Fios and fixed wireless access subscribers. It has exceeded 400,000 net additions for three consecutive quarters. The upcoming expansion of the C-Band spectrum will further enhance Verizon’s network leadership.

Finally, what makes this one of the best blue-chip stock bargains is the company’s commitment to operational efficiency, AI-driven transformation, and cost management contributes to anticipated annual savings of $2–3 billion by 2025, supporting Verizon’s sustained success.

General Motors (GM)

In the long term, General Motors (NYSE:GM) may attain sustained growth and profitability through a combination of strategic initiatives.

The company’s solid operating results stem from customer enthusiasm for new trucks and SUVs, exceptional execution of business plans, and disciplined cost management.

Furthermore, Q2 2023 EBIT-adjusted results reached $3.2 billion with a 7.2% EBIT-adjusted margin, despite an $800 million charge from new commercial agreements with LGE and LGE.

GM may improve its margins through steps taken during the Chevrolet Bolt EV recall, focusing on increasing efficiency and lowering capital spending.

With a robust product lineup, GM has achieved four consecutive quarters of higher U.S. retail market share. Further, the company leads in commercial and total fleet deliveries.

Efforts toward electric vehicles  are paying off, with solid demand for the Ultium Platform leading to raised full-year guidance for EBIT adjusted earnings, free cash flow, and EPS.

The company’s approach to EVs includes expanding manufacturing capacity, simplifying designs, and achieving significant fixed-cost reductions. Finally, the Cruise autonomous vehicle division demonstrates exponential growth with substantial fleet expansion and operational cost reductions.

Chevron (CVX)

Chevron’s (NYSE:CVX) consistent financial performance is evident from its eight consecutive quarters, with a return on capital employed exceeding 12%. Additionally, shareholder distributions reached a record high of over $7 billion, reflecting substantial investor value.

Critically, the development projects in progress, including the Future Growth Project  and Tengizchevroil, are on track.

TCO’s completion is expected to produce 1 million barrels of oil equivalent per day. This may generate approximately $5 billion in free cash flow by 2025 at $60 Brent crude prices.

Chevron’s Permian production sets records, with production levels 5% higher than previous highs. The company expects further production growth, supported by its plans to develop over 2,200 net new wells in the next five years. Therefore, this will lead to a robust ROCE nearing 30% and free cash flow surpassing $5 billion in 2027 at $60 Brent. 

Chevron’s deep resource inventory and favorable royalty position provide a foundation for long-term growth. The company has identified economic net well locations capable of sustaining a production plateau of over 1 million barrels per day beyond the next decade.

Finally, exploration successes, such as the Anchor project in the Gulf of Mexico, and efforts to optimize development plans underscore Chevron’s commitment to continuous growth and efficiency.

PayPal (PYPL)

PayPal’s (NASDAQ:PYPL) focus on e-commerce growth is clear through its consistent increase in branded checkout volumes.

Favorable trends in global macroeconomics support the company. It includes declining core inflation rates expected to drive discretionary spending and accelerate e-commerce growth.

Also, the company shows disciplined expense management, leading to an operating margin increase of approximately 230 basis points YoY (Q2 2023). PayPal’s emphasis on AI-driven advancements and process improvements will lead to greater productivity, enabling cost savings and continued growth.

Notably, the three strategic priorities—branded checkout, merchant solutions, and digital wallets—show substantial progress.

PayPal is successfully introducing innovations such as buy now, pay later features, passkeys for simplified log-in, and AI-driven customer assistance. The PSP merchant solution has garnered significant interest, and partnerships with major channel partners highlight the platform’s strength.

Also, the company’s expansion into high-margin, value-added services and its commitment to AI-driven insights enhance its competitive edge.

Finally, with projected top-line acceleration and increased transaction margin dollars, PayPal aims for low to mid-teens EPS growth. The company’s strong leadership and ongoing CEO succession plan indicate a robust focus on sustained growth.

Walt Disney (DIS)

Walt Disney (NYSE:DIS) is poised for long-term growth based on a three-pronged strategy: film studios, parks, and streaming. Focusing on high-quality, economically efficient films, Disney maximizes distribution windows, tapping into various revenue streams.

The company capitalizes on various distribution avenues to optimize audience access. The parks and experiences segment shows promise with consistent revenue growth. It is highlighted by convincing performances in international parks and successful cruise line expansion.

Streaming, particularly Disney+, capitalizes on solid subscriber growth and increasing ad revenue. Disney has reset its streaming strategy, emphasizing profitability by optimizing content, pricing, and marketing strategies.

The ad-supported Disney+ option has garnered 3.3 million subscribers, enhancing monetization potential. Plans include bundling offerings and expanding into new markets.

Disney demonstrates adaptability with innovative adaptations like a direct-to-consumer approach for ESPN and strategic partnerships. Amid these strategies, the underlying strengths of Disney’s intellectual property, brand appeal, and content continue to drive its long-term trajectory. 

Pfizer (PFE)

Pfizer’s (NYSE:PFE) goal of launching 19 new products or indications within 18 months is making significant progress, with approvals and launches exceeding targets.

Notably, Pfizer’s extensive pipeline, highlighted by advancements such as Marstacimab for hemophilia treatment and next-generation breast cancer treatments, showcases its commitment to ongoing innovation. 

On the other hand, the acquisitions of Arena, ReViral, Biohaven, and Global Blood Therapeutics, along with the pending Seagen acquisition, are expected to contribute substantial revenues by 2030.

Also, the company’s proven track record in COVID-19 response, including the successful vaccine and treatment, has bolstered its reputation and financial standing. Pfizer’s ability to adapt to market uncertainties and adjust its cost base positions it well for future success, as does its strategic focus on oncology research and development.

Last, Pfizer’s recognition in workplace rankings and its commitment to social responsibility contribute to its substantial brand equity, further solidifying its long-term potential. Despite challenges, such as the tornado damage at the Rocky Mount facility, Pfizer remains resilient, adaptive, and well-poised for sustained growth.