The 3 Most Undervalued Blue-Chip Stocks to Buy in June 2024

  • Investors looking for less volatile and better value may want to consider these blue-chip stocks.
  • Walmart (WMT): The retailer is reporting high international growth.
  • Marriott International (MAR): Global sales are on the rise as the company continues to boast high profit margins.
  • Procter & Gamble (PG): The consumer goods company continues to deliver dividends and gains.
undervalued blue-chip stocks - The 3 Most Undervalued Blue-Chip Stocks to Buy in June 2024

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Undervalued blue-chip stocks offer a higher margin of safety than most stocks. That extra margin can minimize an investor’s losses during stock market corrections and market cycles with sharp volatility.

However, minimizing losses doesn’t mean avoiding big gains. It’s possible to take less risk and set your portfolio up for a greater upside with an asymmetric risk-reward setup. Blue-chip stocks that exhibit rising revenue and profit margins are more likely to deliver long-term gains for shareholders. These undervalued blue-chip stocks offer plenty of promise.

Walmart (WMT)

Image of Walmart (WMT) logo on Walmart store with clear blue sky in the background
Source: Jonathan Weiss /

Walmart (NYSE:WMT) sees a steady stream of customers due to its affordable prices and wide selection of groceries. The stock trades at a 34 P/E ratio while offering a 1.26% yield for investors. Walmart has typically maintained a low dividend growth rate, but the company recently announced its highest dividend hike in more than a decade.

The company’s annual dividend currently stands at $0.83 per share, and recent financial results suggest that a higher growth rate is here to stay. Walmart’s revenue increased by 6.0% year-over-year in the first quarter of fiscal 2025. Adjusted EPS increased by 22.4% year-over-year. 

Domestic sales increased by 4.6% year-over-year while international net sales were up by  12.1% year-over-year. Walmart’s continued expansion into international markets can accelerate growth for several years. The company’s successes with e-commerce and advertising can also translate into more growth opportunities. Global e-commerce sales increased by 21% year-over-year while the company’s global advertising business soared by 24% year-over-year.  

Marriott International (MAR)

The front of a Marriott (MAR) building featuring the company name and logo.
Source: Tricky_Shark /

Hotel chains are making a comeback as online marketplaces listing rental units get more expensive and come with fewer amenities. Marriott International (NASDAQ:MAR) is a top pick in the industry due to its vast portfolio, financial growth, and valuation. 

Shares trade at a 24 P/E ratio and offer a 1.09% yield. The stock has only inched up by 4% year-to-date but is up by 74% over the past five years. The slower build-up is because of the company’s recent decline in net income. Marriott International only reported $564 million in net income in Q1 2024 compared to $757 million in the same period last year. Meanwhile, comparable sales increased by 4.2% year-over-year. 

The low valuation and Marriott’s lengthy history as a leading hotel chain offer consolation. Another insight to glean from the earnings report is that Marriott achieved 11.1% year-over-year growth in international markets. Global sales can fuel more upside and lead to enticing long-term gains.

Procter & Gamble (PG)

Procter & Gamble Union Distribution Center. P&G is an American Multinational Consumer Goods Company
Source: Jonathan Weiss /

Procter & Gamble (NYSE:PG) offers essential home care and grooming products under various brands. The company has been in business for more than 175 years and has an impressive dividend streak. Procter & Gamble has been paying a dividend for 133 consecutive years, and that includes 67 consecutive years of dividend hikes.

The stock trades at a 27 P/E ratio and offers a 2.45% yield. Shares are up by 11% year-to-date and have gained 51% over the past five years. Procter & Gamble reported decent earnings in Q3 FY24 which featured 1% year-over-year net sales growth and 11% year-over-year EPS growth. The consumer goods firm maintained its sales guidance but raised its EPS growth guidance for fiscal 2024. 

The Baby, Feminine, and Family Care segment was the only division that experienced a year-over-year decline in sales. Beauty, Health Care, and Fabric & Home Care were up by 2% year-over-year while Grooming products led the way with a 3% year-over-year jump. Procter & Gamble has a 0.42 beta which makes it less volatile than the rest of the stock market. Investors who are seeking stability and a reliable company that has been around for almost 200 years may want to give this stock a closer look. 

On the date of publication, Marc Guberti 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 Publishing Guidelines.

Marc Guberti is a finance freelance writer at who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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