11 oversold blue chip stocks to buy right now

In this article, we look at 11 oversold blue chip stocks to buy right now. To skip analysis of recent trends and market activities, go directly to 5 oversold blue chip stocks to buy right now.

The S&P 500 index, widely considered the gold standard for large-cap stocks listed on U.S. stock exchanges, is up nearly 10.8% since the beginning of the year and 29.7% over the past 12 months. The rally, which began in late October, appears to be a sign that the Federal Reserve's fight to rein in inflation is bearing fruit, buoyed by investor optimism about the possibility of a rate cut in 2024. It is being Optimism grew after the Federal Reserve issued a dovish outlook at its latest meeting earlier this month, maintaining the view that it will cut interest rates three times by the end of the year. became even stronger.

To summarize, the Fed has rapidly raised interest rates from near zero before March 2022, to the current 5.25% to 5.50% range for the domestic benchmark rate, the highest in 22 years. This led to the bankruptcy of Silicon Valley Bank, which had assets of $209 billion, and Signature Bank, which had assets of $110 billion, in March, and the bankruptcy of First Republic Bank, which had assets of $229 billion, in May 2023. This led to the failure of several banks.

While some mega-cap stocks continue to perform well, including several “Magnificent Seven” stocks that played a key role in the late 2023 bull market, some mega-cap stocks have stalled. We are in the red. Year-to-date performance conditions. Apple Inc. (NASDAQ:AAPL) ranks in the middle of our list of 11 oversold blue chip stocks to buy now, as the company faces pressure from antitrust regulators and demand concerns. It is down nearly 11% since the beginning of the year. China.

Another Great Seven company, Elon Musk's electric car maker Tesla Inc. (NASDAQ:TSLA), is also facing pressure, with its stock plummeting nearly 29.2% since the beginning of the year on concerns about electric vehicle demand. There is.

In addition to struggling with macroeconomic and industry-wide market adversity, the stocks on our list of 11 oversold blue chip stocks to buy right now also struggle with individual negative factors. For example, McDonald's Corporation (NYSE:MCD), one of the world's largest fast food chains, is facing a boycott movement related to the conflict between Israel and Hamas in the Middle East, and is facing demand destruction across its international operations. ing. China's macroeconomic pressure.

Another stock joining our list of 11 oversold blue chip stocks to buy right now is Boeing Co. (NYSE:BA), the major aircraft manufacturer that has been part of the headlines for all the wrong reasons. There is. In January, a Boeing 737 MAX 9 operated by Alaska Airlines took off from Portland, Oregon, and had to make an emergency landing after the left side of the plane tore off. The company has delivered more than 200 aircraft of this category. The safety crisis led to major criticism and ultimately major changes in the company's top leadership.

A close-up shot of a stock ticker reflecting the performance of the Indian stock market.

methodology

To compile a list of 11 oversold blue chip stocks to buy right now, we've compiled a list of stocks with market caps over $50 billion and the lowest 14-day Relative Strength Index (RSI).

The relative strength index is a technical indicator that tracks momentum changes in stock prices. It was developed by J. Welles Wilder and is calculated by determining the average of a stock's gains and losses over the past 14 days. An RSI above 70 means the stock is overbought, and an RSI below 30 means it is oversold. You can adjust these levels as needed. The stocks listed in this article are listed in descending order of RSI.

Using data from nearly 900 elite hedge funds tracked by Insider Monkey in the fourth quarter of 2023, we determined how many hedge funds own each company's stock. Hedge funds' top 10 consensus stocks have outperformed the S&P 500 by more than 140 percentage points over the past 10 years. That's why we pay close attention to this often ignored metric.

11. Amgen (NASDAQ:AMGN)

14-day RSI: 37.92

Number of hedge fund holders: 69 people

Amgen, Inc. (NASDAQ:AMGN), based in Thousand Oaks, California, is a leading biotech company that discovers, develops, manufactures and delivers innovative human therapeutics with a focus on areas of unmet medical need. It's a technology company.

On February 6, Amgen, Inc. (NASDAQ:AMGN) announced its fourth quarter 2023 financial results. Revenues increased 20% year over year to $8.2 billion, and net income was $767 million. Normalized EPS for the quarter was $4.71, beating consensus by $0.12.

In the early morning hours of October 6, 2023, Amgen, Inc. (NASDAQ:AMGN) completed its acquisition of Horizon Therapeutics plc in an all-cash transaction, valuing the stock at approximately $27.8 billion. This acquisition strengthens the company's inflammation portfolio with the addition of a first-in-class, early-lifecycle medicine to treat rare inflammatory diseases.

10. Novartis AG (NYSE:NVS)

14-day RSI: 37.75

Number of hedge fund holders: 28 people

Based in Basel, Florida, Novartis AG (NYSE:NVS) is focused on the discovery, development, manufacturing and marketing of prescription and generic pharmaceutical products and eye care products.

On February 6, Novartis AG (NYSE:NVS) announced that it has entered into an agreement to acquire Morphosys AG (NASDAQ:MOR) in a transaction valued at €2.7 billion. This transaction expands and complements the company's oncology pipeline and strengthens its global footprint in hematology.

On February 23, BMO Capital analyst Etzer Dalout initiated coverage of Novartis AG (NYSE:NVS) with a Market Perform rating and a $114 price target. Based on the latest stock price, his price target indicates a potential upside of 15.15%.

9. Workday, Inc. (NYSE:WDAY)

14-day RSI: 35.93

Number of hedge fund holders: 81

Pleasanton, California-based Workday, Inc. (NYSE:WDAY) is a leading provider of enterprise cloud applications for finance and human resources. Its platform is used by over 10,000 organizations in a variety of industries around the world, ranging from midsize businesses to over 50% of Fortune 500 companies.

On February 26, Workday, Inc. (NYSE:WDAY) announced its financial results for the quarter ending January 31, 2024. Sales were $1.9 billion, an increase of 17% from the same period last year, and net income was $1.2 billion.

Investment management company Polen Capital commented on Workday, Inc. (NYSE:WDAY) as follows in its Q4 2023 investor letter “Polen Global Growth Strategy.”

“Following its Investor Day, Workday stock rose significantly during the fourth quarter, supported by the company’s Q3 2024 earnings report, which beat expectations. , which also included management's guidance for fiscal year 2024 earnings increases.We appreciate the long-term guidance provided at the investor meeting.''Investor's Day takes a conservative view. There is plenty of room for Workday to continue gaining market share in the $100 billion-plus global human capital management (HCM) market. We remain confident in Workday's ability to generate more than 20% annualized revenue growth over the next three to five years. ”

8. McDonald's Corporation (NYSE:MCD)

14-day RSI: 35.50

Number of hedge fund holders: 63 people

McDonald's Corporation (NYSE:MCD), headquartered in Chicago, Illinois, is the world's largest fast-food restaurant chain operator. Starting with his single drive-in restaurant in San Bernardino, California in 1955, he has since grown to nearly 40,000 locations in more than 100 countries around the world, serving more than 60 million customers annually. It offers.

On February 5, McDonald's Corporation (NYSE:MCD) announced its financial results for the fourth quarter of 2023. Sales increased 8% year over year to $6.4 billion, with net income of $2.04 billion. Normalized EPS was $2.95, beating consensus estimates by $0.12.

As of Q4 2023, McDonald's Corporation (NYSE:MCD) stock was owned by 63 of the 933 hedge funds tracked by Insider Monkey, with a total value of $2.1 billion. . Ken Griffin's Citadel Investment Group was the largest shareholder with 1.8 million shares worth $533 million.

7. Zoetis Co., Ltd. (NYSE:ZTS)

14-day RSI: 32.16

Number of hedge fund holders: 50 people

Parsippany, New Jersey-based Zoetis Inc. (NYSE:ZTS) is a leading animal health company with a portfolio and pipeline of pharmaceuticals, vaccines, diagnostics and technologies in more than 100 countries. The company was formerly a subsidiary of Pfizer Inc. (NYSE:PFE) and became independent in 2013 as a spinoff.

Zoetis Inc. (NYSE:ZTS) continues its efforts to increase its product franchise in key markets. During the fourth quarter, the company received approval in China for Simparica Trio, its three-part oral parasiticide for dogs. Meanwhile, the company's injectable monoclonal antibody “Sorencia'' to alleviate pain associated with osteoarthritis in cats has received approval in Brazil.

Zoetis, Inc. (NYSE:ZTS) has been paying a regular dividend since its spinoff from Pfizer Inc. (NYSE:PFE), and has increased its dividend for several consecutive years. On February 6, the company's board of directors announced a dividend of $0.432 per share for the second quarter of 2024.

6. Apple Inc. (NASDAQ:AAPL)

14-day RSI: 32.14

Number of hedge fund holders: 131

Apple Inc. (NASDAQ:AAPL) is a leading technology company focused on designing, manufacturing, and marketing smartphones, computers, tablets, wearables, and accessories, as well as a variety of related services. On September 22 last year, the company released the latest version of its flagship smartphone, the iPhone 15, worldwide.

Apple Inc. (NASDAQ:AAPL)'s quarterly revenue increased 2% year over year for the quarter ended December 30th. The company had sales of $119.6 billion and net income of $33.9 billion, which translates to adjusted EPS of $33.9 billion. $2.18.

As of Q4 2023, Apple Inc. (NASDAQ:AAPL) stock is held by 133 out of 933 hedge funds tracked by Insider Monkey, making it an oversold blue chip to buy right now. Highest on a list of 11 stocks. Warren Buffett's Berkshire Hathaway was the largest shareholder with 905.6 million shares worth $174 billion.

Investment management firm Wedgwood Partners commented on Apple Inc. (NASDAQ:AAPL) in its Q4 2023 letter to investors:

“Our Services segment revenue growth accelerated to +16% compared to last year, one of the fastest growth rates since the COVID-19 lockdown, driving earnings per share growth of +11%. The strength of our services division was driven by more than 1 billion paid subscribers across Apple's media platforms. Apple's global installed base is estimated to have more than 2 billion iOS devices, which still represents a sizable share of its current subscriber base. Apple also continues to innovate across its hardware portfolio, including using custom silicon in nearly every device form factor. Most recently, the company launched a new line of Mac computers, including his M3 family of chips, such as the M3 Max, which features up to a staggering 92 billion transistors. Apple's long-term strategy of developing products with customized hardware and software should continue to help differentiate its products and drive solid revenue growth and spend leverage across its ecosystem. is. ”

Click to continue reading 5 oversold blue-chip stocks to buy right now.

Subscribe to Updates

What's Hot