These stocks provide investors with reliability and strong performance in wake of market volatility. They often have robust business models, strong liquidity, and a history of returning value to shareholders. This can be enticing for investors who are cautious of the market’s rally going into the election. Additionally, these companies are intriguing when their stock prices dip below their intrinsic value.
While past performance is no indication of future results, exposure to blue chip companies is a prudent strategy to mitigate risks as they emerge.
Now, here are the top 3 discounted blue-chip stocks to buy in 2024!
JPMorgan Chase (JPM)
JPMorgan Chase (NYSE:JPM), one of the largest financial institutions in the world, stands out as a top pick among discounted blue-chip stocks to buy in 2024. The company has thrived amidst inflation and higher interest rates, and its liquidity is extremely strong.
The recent market conditions over the last 24 months have presented a rare opportunity to invest in JPMorgan at a discount. When inflation took off in the back half of 2021, the stock market was subsequently crushed. Inflation was not transitory after all, and the Federal Reserve was forced to take on a more restrictive monetary policy. While this was bad for the broader stock market, it was great news for JPMorgan’s bottom line.
JPMorgan benefited tremendously from higher interest rates, and the company saw record revenue and net interest income in FY23. Moreover, it strengthened its liquidity and capitalized on the regional banking crisis. The outlook for the 2024 fiscal year remains strong, with the company recently increasing its net interest income outlook to $91 billion FY24. JPM’s valuation and forward price to earnings of 12.64 suggest there is more room for upside in 2024.
McDonald’s Corporation (MCD)
McDonald’s Corp (NYSE:MCD) is another top contender for investors looking to buy discounted blue-chip stocks in 2024. With a vast international presence and brand recognition worldwide, McDonald’s has built a robust business model that very few can replicate.
McDonald’s Corp has suffered a great deal thus far in 2024. The stock is down 17% year to date, and has come under pressure due to a variety of factors. This includes persistent inflationary pressures, supply chain disruptions, and changes in consumer behavior. However, these challenges are largely temporary and do not undermine the company’s long term growth potential.
McDonald’s has a history of navigating through economic headwinds and emerging stronger, thanks to its ability to adapt and innovate. For instance, the company is embracing digital transformation and rapidly expanding its loyalty rewards program. Moreover, the company’s restaurant expansion plans aim at hitting 50,000 restaurants by 2027. This is extremely bullish, and its first quarter earnings results were strong despite ongoing headwinds in the economy. With a trailing price to earnings of 21, MCD stock is among the best discounted blue-chip stocks to buy now.
Canadian National Railway (CNI)
Canadian National Railway (NYSE:CNI), a dominant player in the North American transportation industry, plays a crucial role in the continent’s logistics and supply chain infrastructure. The stock is down 8% year to date, suggesting that there could be an opportunity for investors to unlock hidden value.
Canadian National Railway has experienced a decline due to concerns over economic slowdowns and regulatory challenges. However, the company’s fundamental strengths remain intact. Its wide moat and extensive network spanning Canada and the United States, provides critical infrastructure for various industries. This makes the company incredibly attractive as it transports key materials across agriculture, energy, and manufacturing to keep economies in flow.
In the 2023 fiscal year, the company navigated a challenging macroeconomic environment quite well. While top line growth was largely flat, it grew its earnings per share by 15%. Additionally, its profit margins and cash flow are extremely healthy. With double digit earnings per share growth forecasted through 2026, CNI should be kept on your radar in the second half of 2024.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Terel Miles 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.
Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.