In this article, we will take a look at some of the best blue-chip stocks to buy under $50.
Large companies usually operate across a wider range of businesses than smaller ones, which can smooth out results over time, helping earnings and revenue hold up better from one year to the next. Because of that, large-cap stocks, often labeled blue chips, tend to see less dramatic swings in their share prices compared with smaller companies. They have also, historically, been better equipped to weather economic slowdowns.
Morgan Stanley’s research highlights just how wide the gap has become. Over the past eight-plus years, U.S. large-cap stocks have outpaced small caps by about 62%. This hasn’t been a short-term trend either. Since the early 2000s, smaller stocks have consistently lagged the broader market. Across nearly every major time frame, including one, three, five, 10, and even 15 years, the smallest stocks have trailed the cap-weighted S&P 500.
Still, not everyone believes this pattern will continue indefinitely. Some analysts see room for a shift, especially given how expensive large caps have become. T. Rowe Price points out that high-quality stocks have swung between extremes before. They were unusually cheap during the late-1990s tech bubble, then flipped to historically rich valuations during several periods marked by risk aversion. Those moments included the aftermath of the early-2000s recession, the 2008 financial crisis, the 2013 “taper tantrum,” and the peak of the COVID-19 shock.
According to the firm’s data, once quality stocks get too pricey, the odds of lagging returns rise meaningfully, and the downside can be significant. In simple terms, many high-quality names across U.S. large-cap stocks now look expensive, and that assessment goes well beyond just mega-cap tech.
At first glance, that combination of stretched valuations and past patterns paints a more cautious picture for the outlook of quality stocks.
Given this, we will take a look at some of the best blue-chip stocks to invest in.
Our Methodology:
For this article, we screened for companies with a market cap above $10 billion and share prices below $50, as of the close of December 10. From that list, we identified companies with positive analyst sentiment, solid financials, and sound balance sheets. Finally, we picked 13 companies from that group that were most popular among hedge fund investors, as per Insider Monkey’s database of Q3 2025, and ranked them accordingly.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Rogers Communications Inc. (NYSE:RCI)
Number of Hedge Fund Holders: 18
Share Price as of the Close of December 10: $35.88
Rogers Communications Inc. (NYSE:RCI) is among the best blue-chip stocks to invest in.
Morgan Stanley, on December 10, lifted its price target on Rogers Communications Inc. (NYSE:RCI) to C$50 from C$46 and maintained an Underweight rating on the shares. The update came as part of a broader 2026 outlook on the telecom and cable service sector.
Rogers Communications Inc. (NYSE:RCI) posted solid results for the third quarter of 2025. The revenue came in at C$5.34 billion, which marked a 4% increase from a year ago. Services revenue was C$4.7 billion, also up 4% from the same period last year. Alongside the financial results, the company highlighted several operational achievements.
During the quarter, Rogers Communications Inc. (NYSE:RCI) launched Rogers Satellite, which now provides Canadians with three times more geographic coverage than any other carrier. The company also activated 5G service across 4,650 meters of tunnels in the Toronto Transit Commission subway system. It also partnered with the federal government to launch the Connected Robotics Living Lab to support research in 5G and AI. In addition, Rogers continued rolling out next-generation WiFi 7 technology across the country.
Rogers Communications Inc. (NYSE:RCI) is one of Canada’s largest diversified media and telecom companies, offering a broad range of services to consumers and businesses.
12. Weyerhaeuser Company (NYSE:WY)
Number of Hedge Fund Holders: 29
Share Price as of the Close of December 10: $23.03
Weyerhaeuser Company (NYSE:WY) is among the best blue-chip stocks to invest in.
On December 10, Seaport Research lowered its price target on Weyerhaeuser Company (NYSE:WY) to $33 from $35 while maintaining a Buy rating. The adjustment reflects the company’s third-quarter results.
In separate news, Weyerhaeuser Company (NYSE:WY) and Aymium announced that they have signed a memorandum of understanding (MOU) to work together on producing and selling 1.5 million tons of sustainable bicarbon each year for use in metals manufacturing. As the first step in this partnership, the two companies have created a joint venture called TerraForge Biocarbon Solutions. The venture will build a jointly owned facility next to Weyerhaeuser’s lumber mill in McComb, Mississippi, where wood fiber will be converted into bicarbon using a low-emissions, combustion-free process.
Under the agreement, both companies plan to secure long-term sales contracts and identify locations for several new production facilities across Weyerhaeuser Company (NYSE:WY)’s footprint over the next five years. The expansion will combine WY’s extensive timberlands and manufacturing network with Aymium’s proprietary technology and long record of producing bicarbon products.
Once fully scaled, the network of facilities could convert more than 7 million tons of wood fiber supplied exclusively by Weyerhaeuser Company (NYSE:WY) and produce 1.5 million tons of metallurgical-grade biocarbon each year.
Weyerhaeuser Company (NYSE:WY) is one of the largest private owners of timberlands globally. Founded in 1900, the company today owns and controls about 10.4 million acres of timberlands in the US.
11. Hormel Foods Corporation (NYSE:HRL)
Number of Hedge Fund Holders: 32
Share Price as of the Close of December 10: $23.74
Hormel Foods Corporation (NYSE:HRL) is among the best blue-chip stocks to invest in.
On December 9, Barclays cut its price target on Hormel Foods Corporation (NYSE:HRL) to $31 from $30 as it outlined its view for the Americas agribusiness sector. However, the firm maintained an Overweight rating on the shares. Barclays expects the agriculture market to deliver mixed results next year. The firm is more optimistic about seed companies than crude protein producers and sees fertilizers as neutral to slightly positive. For grain traders, the firm says the direction of the market will heavily depend on biofuel policy. In the protein segment, Barclays expects 2026 to look a lot like 2025.
Hormel Foods Corporation (NYSE:HRL)’s fiscal Q4 2025 earnings were announced on December 4, in which the company’s revenue came in at $3.2 billion, showing a 2% growth from the last year. Operating income was modest at $2 billion, while adjusted operating income reached $245 million. Even with these positive signs, the company is still dealing with pressure on profitability because of stubborn input cost inflation and some one-off items. However, the management indicated that they are taking clear steps to improve results, including targeted price increases, cuts to administrative expenses, and ongoing investment in Transform and Modernize initiatives.
As part of these structural changes, Hormel Foods Corporation (NYSE:HRL) announced in November that it will cut 250 corporate and sales jobs. The company, in addition to this, launched a voluntary early retirement program for some non-plant employees and plans to close unfilled roles, along with reducing parts of its office-based workforce. Hormel expects to take $20 million to $25 million in restructuring charges related to pension benefits, severance, employee costs, and stock compensation.
Hormel Foods Corporation (NYSE:HRL) is a well-known American food company, producing a wide range of branded meat and grocery products found in households across the country.
10. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 36
Share Price as of the Close of December 10: $17.5
Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the best blue-chip stocks to invest in.
On December 8, Morgan Stanley analyst Andrew Percoco downgraded Rivian Automotive, Inc. (NASDAQ:RIVN) to Underweight from Equal Weight while keeping the price target at $12. The change came after a shift in analyst coverage and as part of the firm’s broader 2026 outlook for autos and shared mobility. Morgan Stanley said it is taking a more cautious stance heading into next year, expecting the electric vehicle “winter” to last through 2026. This softer view of EVs is partly balanced by a somewhat more upbeat outlook for internal combustion and hybrid vehicles.
At its first “Autonomy and AI Day” on December 11, Rivian Automotive, Inc. (NASDAQ:RIVN) announced that it has built its own custom chip, a new car computer, and fresh AI models that will power self-driving features in its future vehicles. The company also shared plans for the Autonomy+ subscription for its second-generation vehicles, set to launch in early 2026. The service will run on Rivian’s new Autonomy Processors and autonomy computers and will grow in capability over time.
Autonomy+ will cost $2,500 upfront or $49.99 per month. For comparison, Tesla prices its FSD (Supervised) package at $8,000 upfront and $99 per month.
Rivian Automotive, Inc. (NASDAQ:RIVN) is under growing pressure to show investors that its long-term growth story is still intact. The company is working efficiently to expand its customer base, even as US battery-electric vehicle sales are slowing. In addition, intensified competition from Chinese EV makers is also contributing to the situation.
Rivian Automotive, Inc. (NASDAQ:RIVN) builds and sells premium electric adventure vehicles, focusing on performance, utility, and technology.
9. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 40
Share Price as of the Close of December 10: $44.6
Alcoa Corporation (NYSE:AA) is among the best blue-chip stocks to invest in.
On December 5, JPMorgan raised its price target on Alcoa Corporation (NYSE:AA) to $45 from $35 as part of the firm’s broader 2026 outlook for North American metals and mining companies. The firm kept a Neutral rating on the shares.
Alcoa Corporation (NYSE:AA)’s third-quarter earnings showed a modest improvement as revenue rose 3% from the same period last year, coming in at just under $3 billion. The company said that the higher Midwest premium it earned on US aluminum production helped offset the impact of tariffs and other costs tied to aluminum imports. Much of this strength came from its shipments from Alcoa’s Canadian smelters to customers in the US.
Alcoa Corporation (NYSE:AA) continues to focus on building long-term shareholder value through several strategic efforts. In 2024, it completed its first major acquisition by purchasing Australia’s Alumina Limited, a move that further solidified its position as a leading pure-play upstream aluminum producer. The company is also putting capital into expanding its operations and lowering costs through organic investments.
Alcoa Corporation (NYSE:AA)’s commitment to expansion was also seen recently, as in October, the company announced two key developments for its Massena Operations in New York. The first was a new 10-year energy agreement with the New York Power Authority, which aims to provide the facility with 240 MW of competitively priced renewable energy starting April 1, 2026, with the option to extend the contract for up to 10 additional years. The second was a planned $60 million investment to upgrade the site’s anode baking furnace, an essential part of the smelting process.
Alcoa Corporation (NYSE:AA) is an integrated aluminum producer and one of the world’s largest miners of bauxite, the essential raw material used to produce aluminum.
8. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Number of Hedge Fund Holders: 42
Share Price as of the Close of December 10: $17.56
Huntington Bancshares Incorporated (NASDAQ:HBAN) is among the best blue-chip stocks to invest in.
On December 10, Piper Sandler raised its price target on Huntington Bancshares Incorporated (NASDAQ:HBAN) to $16 from $15, while keeping an Underweight rating. The update followed the company’s release of slides for an upcoming conference, which highlighted a few key points: organic growth remains Huntington’s core strategy, the bank has a strong track record of successful integrations, it sees mergers and acquisitions as a way to fuel further organic expansion, and management believes the company has a solid model for creating value.
Earlier in October, Huntington Bancshares Incorporated (NASDAQ:HBAN) announced a definitive agreement to acquire Cadence Bank, a $53 billion regional bank with headquarters in Houston, Texas, and Tupelo, Mississippi. Following that, Huntington said it plans to reduce some jobs at Cadence as part of its $7.4 billion acquisition. The move will help the Ohio-based bank strengthen its presence in what management considers one of the three most attractive US markets. The bank has not shared exactly how many positions will be cut at Cadence, which has around 5,800 employees. The all-stock deal, announced in late October, is expected to close in the first quarter of 2026.
Over time, Huntington Bancshares Incorporated (NASDAQ:HBAN), which had more than 20,000 employees before the acquisition, may shift some rules from other regions to Texas as it focuses on growth in the new market.
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a major US regional bank holding company, operating Huntington National Bank and offering a wide range of financial services.
7. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 44
Share Price as of the Close of December 10: $13.4
Ford Motor Company (NYSE:F) is one of the best blue-chip stocks to invest in.
On December 8, Morgan Stanley began coverage of Ford Motor Company (NYSE:F) with an Equal Weight rating and $14 price target. The move is part of the firm’s 2026 outlook for the autos and shared mobility sector following the change in analysts. The firm said it is “leaning more cautious” heading into next year, expecting the electric vehicle “winter” to continue through 2026. This cautious view is partially balanced by a “moderately more positive” outlook on internal combustion engines and hybrids, the analysts noted in a research update.
On December 9, Renault announced a partnership with Ford Motor Company (NYSE:F) to develop small, more affordable electric vehicles for the European market and to jointly produce commercial vans. The collaboration is aimed at reducing costs and addressing rising competition from Chinese automakers.
As part of the partnership, the first of the two planned small EVs will be built at a Renault plant in northern France and is expected to reach European showrooms in 2028. According to Farley, CEO of Ford, these vehicles will be smaller than anything Ford plans for the US market and will fill a gap in the automaker’s lineup.
The two companies will also work together to develop Renault and Ford brand vans for Europe. The partnership came together after a renewed team visited Ford’s Detroit headquarters in March.
Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a full range of vehicles, including cars, trucks such as F-Series, SUVs, commercial vans, and luxury Lincoln models.
6. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 48
Share Price as of the Close of December 10: $45.7
General Mills, Inc. (NYSE:GIS) is one of the best blue-chip stocks to invest in.
On December 11, Jefferies analyst Scott Marks cut his price target on General Mills, Inc. (NYSE:GIS) to $47 from $50 and maintained a Hold rating. He said US tracked channel data shows the company’s recent price investments are “working,” since both retail sales and volumes have started to pick up. The firm sees room for the trend to continue improving and credits management for taking steps like lowering prices to spark growth. Even so, Jefferies noted that “there remains more work to be done” and still expects some near-term pressure.
In its third-quarter 2025 earnings update, CEO Jeffrey Harmening highlighted that General Mills, Inc. (NYSE:GIS) is working through a major period of change. He pointed to the Yoplait divestiture and the Whitebridge acquisition as two key moves, while reaffirming that the company remains committed to profitable organic growth. Harmening also said new product activity has ramped up meaningfully, with volumes already up 25%. He added that more new items are lined up for the second quarter and that the company has strong plans in baking and soup, which are especially important as fall and winter approach.
General Mills, Inc. (NYSE:GIS) is a leading global food company that sells and markets more than 100 well-known consumer food brands.
5. Toast, Inc. (NYSE:TOST)
Number of Hedge Fund Holders: 56
Share Price as of the Close of December 10: $35.4
Toast, Inc. (NYSE:TOST) is among the best blue-chip stocks to invest in.
On December 4, JPMorgan analyst Tien-tsin Huang upgraded Toast, Inc. (NYSE:TOST) to Overweight from Neutral and kept the price target at $43. The firm said there could be meaningful upside to estimates if interchange fees end up being regulated. JPMorgan also noted that Toast should continue delivering “top decile growth” as a software-driven payments player that is “unburdened” by legacy distribution.
For the third quarter of 2025, Toast, Inc. (NYSE:TOST) posted another strong set of results. Revenue rose 34%, margins came in at 35%, and the company saw steady year-over-year growth in new location adds. The company also shared that it has crossed $2 billion in ARR for the first time. Management pointed to wins with major operators such as Nordstrom, TGI Fridays, and Everbowl, along with a deeper partnership with Uber to help restaurants better manage off-premise sales.
The company added that its Enterprise, international, and food and beverage retail businesses are on track to reach a combined $100 million in ARR this year. It also sees room for each of those segments to eventually grow into $1 billion ARR opportunities.
Toast, Inc. (NYSE:TOST) is a cloud-based, all-in-one digital technology platform designed specifically for the restaurant industry.
4. Chewy, Inc. (NYSE:CHWY)
Number of Hedge Fund Holders: 57
Share Price as of the Close of December 10: $35.37
Chewy, Inc. (NYSE:CHWY) is among the best blue-chip stocks to invest in.
On December 11, Goldman Sachs lifted its price target on Chewy, Inc. (NYSE:CHWY) to $52 from $44 and reiterated a Buy rating. The firm said Chewy’s Q3 numbers came in stronger than expected, helped by solid growth in active customers, continued improvement in gross margins, and disciplined spending. Management also indicated that Q4 should look a lot like Q3 and that 2026 will be about building on the company’s competitive strengths and scaling key platform initiatives. Despite questions about near-term consumer spending, Goldman believes the company is set up well for the long run thanks to trends like gaining market share in the pet category, capturing more customer spending, and expanding margins through Chewy+, Autoship, healthcare, advertising, and better fulfillment efficiency.
For the third quarter of 2025, Chewy, Inc. (NYSE:CHWY) reported $3.12 billion in revenue, up 8.3% from a year earlier. Its gross margin improved to 29.8%, which was 50 basis points higher than last year. SG&A expenses for the quarter, excluding stock-based comp and related taxes, totaled $588.6 million or 18.9% of sales. This figure included roughly $2.7 million of one-time costs tied to the company’s pending purchase of SmartEquine.
In October, Chewy, Inc. (NYSE:CHWY) announced a definitive agreement to acquire SmartPak Equine, LLC (SmartEquine) from Covetrus. SmartEquine, which rebranded from SmartPak in mid-2025, is one of the top providers of equine health products in the US. The deal boosts Chewy’s presence in the equine category and helps the company move further into higher-margin health and wellness offerings. With SmartEquine’s premium products and loyal customer base combined with Chewy’s logistics, innovation, and customer support, the company aims to offer a stronger and more complete experience for equine customers nationwide.
Chewy, Inc. (NYSE:CHWY) is a major US online retailer of pet products, offering everything from food and treats to supplies and prescription medications for a wide range of animals.
3. Occidental Petroleum Corporation (NYSE:OXY)
Number of Hedge Fund Holders: 62
Share Price as of the Close of December 10: $41.75
Occidental Petroleum Corporation (NYSE:OXY) is one of the best blue-chip stocks to invest in.
On December 11, BofA analyst Jean Ann Salisbury trimmed her price target on Occidental Petroleum Corporation (NYSE:OXY) to $44 from $45. The analyst kept a Neutral rating on OXY.
Back in October, Berkshire Hathaway and Occidental Petroleum Corporation (NYSE:OXY) announced a deal in which Berkshire will buy Occidental’s chemical division, OxyChem, for $9.7 billion in cash, pending standard adjustments. OxyChem, a major global producer of essential commodity chemicals, manufactures products used in everything from water treatment and healthcare to pharmaceuticals and construction.
During the company’s Q3 2025 earnings update, CEO Vicki Hollub said the sale of OxyChem marks a major step in the company’s broader strategic shift and also noted that the move will help the company strengthen its balance sheet, bump up returns to shareholders, and free up capital for high-return projects in its core oil and gas operations.
Occidental Petroleum Corporation (NYSE:OXY) is a global energy player with operations mainly in the United States, the Middle East, and North Africa.
2. Chipotle Mexican Grill, Inc. (NYSE:CMG)
Number of Hedge Fund Holders: 65
Share Price as of the Close of December 10: $33.9
Chipotle Mexican Grill, Inc. (NYSE:CMG) is one of the best blue-chip stocks to invest in.
Raymond James says its latest pricing checks show that Chipotle Mexican Grill, Inc. (NYSE:CMG) has quietly started raising menu prices in a few markets. This lines up with what management said on its Q3 call, explaining that it planned to use a “test-and-learn” and regional approach to pricing as it moves into 2026. So far, the firm has noticed two increases: roughly 2.5% in Denver and a little over 3% in Sacramento. It is still unclear when other markets might see similar changes, but Raymond James expects Chipotle to continue rolling out phased increases in the 2% to 3% range through 2026. That could translate into menu pricing growth of about 1% to 2% year over year. On December 5, the firm rates the stock Outperform.
On December 8, Chipotle Mexican Grill, Inc. (NYSE:CMG) disclosed in an SEC filing that its board approved another $1.8 billion for share buybacks. The board typically authorizes new repurchase pools every quarter, but starting with this latest move, it plans to approve larger amounts that can fund buybacks across several quarters at a time.
In other news, on December 12, Chipotle Mexican Grill, Inc. (NYSE:CMG) marked a major milestone by opening its 4,000th restaurant, located in Manhattan, Kansas, also known as the “Little Apple.” The company is now more than halfway toward its long-term goal of reaching 7,000 restaurants across the US and Canada. Since CEO Scott Boatwright took over in 2017, Chipotle has added about 1,700 new locations, growing its footprint by more than 70%. For 2025, Chipotle expects to open 315 to 345 new restaurants, with at least 80% featuring a Chipotlane. Looking ahead to 2026, management is planning 350 to 370 openings, including 10 to 15 run by international partners.
Chipotle Mexican Grill, Inc. (NYSE:CMG) is a fast-casual restaurant chain known for its customizable Mexican-inspired meals.
1. Pinterest, Inc. (NYSE:PINS)
Number of Hedge Fund Holders: 66
Share Price as of the Close of December 10: $27.7
Pinterest, Inc. (NYSE:PINS) is one of the best blue-chip stocks to invest in.
On December 11, Pinterest, Inc. (NYSE:PINS) announced that it has signed a definitive agreement to acquire tvScientific, a connected TV (CTV) performance advertising platform. This move will let Pinterest use its intent-driven audience data alongside a CTV engine for the first time, giving marketers a clearer picture of how TV ads contribute to the results of their performance campaigns.
Pinterest, Inc. (NYSE:PINS) now reaches about 600 million monthly active users who have saved Pins across 15 billion boards. This activity creates strong predictive signals about what people want to do or buy next. By acquiring tvScientific, Pinterest plans to bring these high-intent audiences into the CTV space. tvScientific’s outcome-based CTV platform will be built directly into Pinterest’s performance tools, including its automation and AI-powered advertising suite, Pinterest Performance+.
Earlier on December 8, Wedbush downgraded Pinterest, Inc. (NYSE:PINS) to Neutral from Outperform and cut its price target to $30 from $34. Wedbush called the company’s Q3 results “mixed” and said its outlook reflects a “less constructive range of outcomes” due to macro uncertainty and tariff concerns. The firm also noted that investors are watching the rising adoption of competing agentic commerce tools, which adds another layer of risk.
Wedbush believes Pinterest is on track to land at the lower end of its intermediate-term targets and thinks the stock’s current valuation now looks more balanced. It also sees limited visibility into any near-term catalysts that could significantly boost growth.
Pinterest, Inc. (NYSE:PINS) is a visual discovery platform where people explore ideas, save content, and plan projects through Pins.
While we acknowledge the potential of PINS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PINS and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 15 Best Stocks to Buy for the Long Term and 11 Best Low Priced Dividend Stocks to Buy According to Analysts
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
