Whether stocks are in a bull market, bear market, or something in-between, blue-chip stocks are great core portfolio positions for investors of all stripes.

There are plenty of high-quality stocks that fit within this category, but it may be worthwhile to consider which of these names are in the “Green Zone.”

TradeSmith offers investors valuable tools for determining which stocks to watch. A good example is its Health Indicator feature. This comprehensive indicator provides an overall rating of a stock’s current health.

Using this metric, you can quickly find potential opportunities to explore. Broken down into three “zones” (green, yellow, and red), you’ll have a general idea about whether it’s best to be bullish, bearish, or neutral on a particular stock.

As you may have guessed, stocks in the “Green Zone” are performing well, with little indication that the trend is on the verge of shifting.

A stock in the “Yellow Zone” has corrected by more than 50% of its volatility quotient (VQ), a proprietary TradeSmith metric that helps measure a stock’s risk. When a stock in your portfolio goes from green to yellow, it may be a good time to reassess whether to maintain the position.

Stocks entering the “Red Zone” have corrected by more than their calculated volatility quotient. VQ can be useful when adding stop losses to your positions. View any move into the “Red Zone” as a warning sign to exit your position for now.

With this, let’s take a look at three blue-chip stocks to buy, each of which is currently in the “Green Zone.”

Apple (AAPL)

Apple (NASDAQ:AAPL) has been in the “Green Zone” for over two months. Like other Magnificent 7 stocks, shares in the iPhone maker rallied during November and December, as the market reacted positively to the prospect of slowing inflation and lower interest rates (both positives for tech demand and tech stock valuations).

However, while other mega-cap tech stocks have continued to perform well, a trio of analyst downgrades have dampened sentiment for AAPL stock, sending shares lower in recent weeks. Yet while the stock has delivered a far less stellar performance lately, this trend may prove temporary.

While analyst pessimism is rising, some on the sell-side have reiterated their bullish views on the stock, noting the potential for Apple to experience growth reacceleration and make major AI-related progress during 2024. TradeSmith’s volatility quotient for AAPL is 21.94%, which makes it a medium-risk stock.

Verizon Communications (VZ)

Verizon Communications (NYSE:VZ) has been in the “Green Zone” for over two weeks. Shares in this telecom firm have long been seen as a “value trap,” but the company may be shaking off this reputation. At least, based on growing optimism from analysts, who believe that Verizon will report improved results in the coming year.

The prospect of lower interest rates has also been a positive for VZ stock. Many investors are attracted to Verizon for its high dividend payouts. At current prices, shares have a forward yield of 6.81%. If interest rates move lower, this will also likely have a positive impact on VZ’s 2024 performance.

One thing that should give investors pause is that Verizon is in the middle of a class-action lawsuit. However, the company has reached a settlement and is working to make payouts to impacted customers. That means with a low-risk volatility quotient of 14.73%, VZ is still a stock to watch in 2024.

JPMorgan Chase (JPM)

JPMorgan Chase (NYSE:JPM) has been in the “Green Zone” for over two months. Like other blue-chip stocks sensitive to interest rates, increased confidence in the Fed pivot thesis has led to a big surge for shares in this money center.

Since November, JPM stock has soared from around $140 to around $170 per share. Yet even after surging by 22% in a little over two months, recent price trends may continue.

Why? During lower interest rate environments, this stock (trading at around 10 times earnings) has sported a relatively low forward multiple. TradeSmith’s volatility quotient for JPM is 18.97%, which makes it a medium-risk stock.

The TradeSmith Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.