SPECIAL REPORT The Top 7 Stocks for 2024

3 Blue-Chip Stocks You Can Snag at an All-Time Low

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  • Here are three beaten-down blue-chip stocks to buy and hold today.
  • AT&T (T): It had a rough year, but it’s starting to show big signs of life again.
  • Southwest Airlines (LUV): A top contrarian idea that has priced in a good deal of negativity.
  • Genuine Parts (GPC): Use weakness as an opportunity, and get paid to wait for the recovery.
Blue-chip stocks - 3 Blue-Chip Stocks You Can Snag at an All-Time Low

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Blue-chip stocks are the crème de la crème of the market. Not only are they the safest, but they’ve stood the test of time in good times and bad. They all have proven business models, strong track records, sales, reputations and oftentimes, dividends to boot. 

Better, most will (likely) never go out of business because they offer products and services that millions of us depend on every day just to function. Sometimes, you’ll even spot big opportunities to buy on the cheap. In fact, here are just a few of the top blue-chip stocks you can buy at an all-time low right now.

Blue-Chip Stocks: AT&T (T)

A photo of an AT&T office building.
Source: Roman Tiraspolsky / Shutterstock.com

AT&T (NYSE:T) had a rough year, but it’s starting to show big signs of life again. 

In fact, after hitting a low of $13.18 – a low it hasn’t seen since October 2012 – it’s just starting to pivot higher. Better, while we wait for the telecom to recover even more lost ground, we can collect its 7% yield in the meantime. 

Helping, analysts at Citi just raised their price target to $18, with a buy rating. All after “AT&T reported strong Q3 results, with better than anticipated volumes from postpaid phones and fiber net adds and EBITDA growth of 4.6%,” as noted by TheFly.com. Even better, the company just increased its free cash flow target to $16.5 billion for 2023. 

And, it also increased its EBITDA growth forecast from 3% to 4%. As noted in its Q3 earnings call, “Due to our increased revenue growth and overachievement in cost savings, we now expect to grow adjusted EBITDA by better than 4% versus our prior guides of 3% plus.”

Southwest Airlines (LUV)

Southwest (LUV) plane mid-flight with mountains in background. Represents airline stocks.
Source: Eliyahu Yosef Parypa / Shutterstock.com

Southwest Airlines (NYSE:LUV) fell out of the sky. After hitting a high of about $61.50, the airline stock plummeted to a low of $22.01 – a low it hasn’t seen since 2014. 

All after cutting its outlook, noting that revenue per available seat mile would fall between 5% and 7%, as noted by Barron’s contributor Callum Keown. Higher fuel costs grounded the stock, too. However, with a good deal of negativity priced into the stock, the pullback appears a bit overdone. While it’ll take some time for LUV to regain lost ground, investors can collect its yield of 2.96% while they wait. 

Genuine Parts (GPC)

5 Great Blue-Chip Stocks to Buy
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There’s also Genuine Parts (NYSE:GPC), which was crushed after missing sales estimates. 

In its most recent quarter, the company posted sales of $5.82 billion, which missed expectations for $5.91 billion. However, don’t write the stock off just yet.  Instead, use the weakness as an opportunity. While we wait for the eventual recovery here, we can collect its 2.76% yield. We can profit from capital appreciation, and get paid to wait. 

Analysts say GPC is a moderate buy, with a price target of $154.38. Even better, bargain hunters are jumping back in. After testing its June 2022 low, it also became wildly over-extended on relative strength (RSI), MACD, and Williams’ %R, and started to bounce.  Now up to $137.50, I’d eventually like to see it refill its bearish gap around $148. Again, use weakness an opportunity.

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

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.


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