What qualifies as a blue chip stock? (2024)

What qualifies as a blue chip stock?

A blue chip stock is a company that typically has a large market cap, a sterling reputation, excellent financials, and many years of success in the business world. A blue-chip index seeks to track the performance of financially stable, well-established companies that provide investors with consistent returns.

What is considered a blue-chip stock?

A blue chip stock is defined as a security that represents an equity position in a company possessing most of the following characteristics: An industry leader with a dependable business model. A proven track record and strong reputation with consumers and shareholders.

What is the criteria for a blue-chip?

The term "blue chip" comes from the game of poker, where blue chips are the highest-value pieces. A company must be well-known, well-established, and well-capitalized to be a blue chip. Membership in certain stock indexes is important for determining blue chip status.

How do you determine blue-chip stocks?

Stocks that are considered blue-chip stocks generally have these things in common: Large market capitalization. Market cap is a measure of the size and value of a company. Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more.

Is Apple a blue-chip stock?

Apple Inc (NASDAQ:AAPL)

Apple Inc (NASDAQ:AAPL) is undoubtedly one of the best blue chip stocks to buy and hold according to hedge funds.

Is Google a blue-chip stock?

Alphabet (GOOG, GOOGL)

Anchored by core Google properties and its $150 billion stockpile, Alphabet has the stability and vision to drive transformational growth, which is why it's on this list of stable blue-chip stocks.

Is Amazon a blue-chip stock?

Amazon's entry will significantly increase the exposure of the blue-chip index in the e-commerce, consumer retail and technology space. Amazon's weight in the Dow will rank 17th out of the 30 stocks. Walmart's weight will drop to 26 from 17.

What is blue chip exemption?

Blue chip exemption. Exemption for offers and sales of securities by an issuer which has a class of securities that is required to be and is registered under Section 12 of the Securities Exchange Act of 1934, and has been so registered for the three years immediately preceding the offering date.

How much is a blue chip?

How big a company needs to be to qualify for blue chip status is open to debate. A generally accepted benchmark is a market capitalization of $10 billion, although market or sector leaders can be companies of all sizes.

What is a blue chip candidate?

Blue chip players are those who have proven themselves to be among the best at their positions in their respective sports and are more sought after and wanted than other players. They are typically perceived as "can't miss" prospects who are desired by most organizations.

Is Walmart a blue-chip stock?

Consumers, particularly low-income consumers, will flock to the company for its everyday low prices. However, the company has also made significant strides to become a forceful e-commerce presence. And like many blue-chip stocks, Walmart is a dividend king that has increased its dividend for 51 consecutive years.

Is Tesla a blue-chip stock?

The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN. They're much more volatile. Tesla, for example, is down about 23% so far this year.

Is Costco a blue-chip stock?

Costco Wholesale (NASDAQ:COST) stock continues to be one of the best blue-chip stocks investors can buy and remains the gold standard of the retail sector.

Is Starbucks a blue-chip stock?

Adding it all together. No company's journey is always smooth, but Starbucks has been a winning company and stock for decades. Sometimes, these blue chips get boring, and the market loses interest. Shares are trading near their 52-week low, providing potential buyers with a great opportunity.

Which stock will boom in 2024?

Is Netflix a blue-chip stock?

Netflix (NFLX)

Streaming giant Netflix (NASDAQ:NFLX) is another option in reliable blue-chip stocks. The company has had a tough ride but it has survived through it all.

Is Mcdonalds a blue-chip stock?

Investors should consider these Blue Chip stocks, which are always a good bet before years end. McDonald's (MCD): McDonald's is entering a period of growth that makes it even more intriguing. Broadcom (AVGO): AVGO will be a strong secular performer through 2024.

Is Home Depot a blue-chip stock?

Home Depot: Headquartered in Atlanta, GA, this company stands as another distinguished blue-chip stock, dominating the home improvement retail sector.

Is Disney stock blue-chip?

The Walt Disney Co.

(DIS): It may not surprise you that our blue chip companies list includes one of the biggest and well-known companies in the world.

Is FedEx a blue-chip stock?

FedEx (FDX)

FedEx (NYSE:FDX) remains a best-in-class blue-chip shipping stock, recovering nicely from its 2022 lows to gain 47% this year.

Is Ebay a blue-chip stock?

eBay (EBAY)

eBay (NASDAQ:EBAY) is another blue-chip company undertaking layoffs due to declining sales. In January, the e-commerce giant announced plans to eliminate 9% of its workforce, or about 1,000 full-time employees, to control costs and lower expenses.

Is Caterpillar a blue-chip stock?

The other blue-chip stocks listed — JPMorgan Chase & Co., Salesforce, Caterpillar and UnitedHealth Group — are among the 30 companies that make up the DJIA.

What is an example of a blue chip stock might be?

Some examples of blue chip stocks are IBM Corp., Coca-Cola Co., Microsoft, American Express, McDonald's, and Boeing Co.

Is PepsiCo a blue chip stock?

Grab these 3 blue-chip stocks with the new bull market underway. PepsiCo (PEP): The company projects 13% EPS growth in FY23. UnitedHealth Group (UNH): Scoop up shares of this blue-chip healthcare stock on the dip before Wall Street does.

What is the opposite of a blue chip stock?

The opposite of blue chip stocks are generally referred to as penny stocks - shares in small companies with relatively low share prices often listed on smaller exchanges.