In this article, we will take a look at the 5 Best Affordable Blue Chip Stocks to Buy Now. For deeper discussion and analysis, have a look at the 10 Best Affordable Blue Chip Stocks to Buy Now.
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5. AT&T Inc. (NYSE:T)
Share Price as of April 17: $26.51
Forward P/E Ratio: 11.45
AT&T Inc. (NYSE:T) provides telecommunications and technology services worldwide.
On April 16, Morgan Stanley assumed coverage of AT&T Inc. (NYSE:T) with an ‘Overweight’ rating and a price target of $30, indicating an upside potential of over 13% from the current price levels.
The analyst firm highlighted that AT&T Inc. (NYSE:T) is “well into its turnaround story” after offloading its noncore assets and sharpening its focus to its core connectivity services business. Moreover, the company’s status as “by far” the largest fiber provider and builder in the US positions it well to benefit from industry convergence.
AT&T Inc. (NYSE:T) is targeting to reach over 40 million customer locations with its fiber services by the end of 2026, up from 32 million at the end of last year. The company plans to expand its fiber reach by approximately 5 million locations annually through the end of the decade.
On the other hand, BNP Paribas turned bearish on AT&T Inc. (NYSE:T), downgrading the stock from ‘Outperform’ to ‘Neutral’ on April 8 (read more details here).
4. Verizon Communications Inc. (NYSE:VZ)
Share Price as of April 17: $46.55
Forward P/E Ratio: 9.51
Verizon Communications Inc. (NYSE:VZ) engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide.
On April 16, Morgan Stanley assumed coverage of Verizon Communications Inc. (NYSE:VZ) with an ‘Equal Weight’ rating and a price target of $49, representing an upside of more than 5% from the current levels.
According to the analyst firm, Verizon Communications Inc. (NYSE:VZ) is currently going through a strategic turnaround under its new CEO, Dan Schulman. Morgan Stanley expects the company to remain a show-me story in the near to medium term, as investors look for clear evidence that the new management can successfully transition Verizon from the wireless market share to gaining it.
Verizon Communications Inc. (NYSE:VZ) is targeting approximately 750,000 to 1 million postpaid phone net adds in 2026, which is 2 to 3 times its total last year. The company expects its adjusted EBITDA to be in the range of $4.90 to $4.95 for FY 2026, up 4% to 5% from last year. Moreover, free cash flow is projected to reach $21.5 billion or more during the year, indicating a YoY growth of about 7% or more.
3. Sanofi (NASDAQ:SNY)
Share Price as of April 17: $48.06
Forward P/E Ratio: 9.44
Sanofi (NASDAQ:SNY) is a healthcare biopharmaceutical company that engages in the research, development, manufacture, and marketing of therapeutic solutions.
On April 13, Citi analyst Graham Parry raised the firm’s price target on Sanofi (NASDAQ:SNY) from €80 to €82, while maintaining a ‘Neutral’ rating on the shares.
Sanofi (NASDAQ:SNY) is targeting sales to grow by a high single-digit percentage in FY 2026, with business EPS surging slightly faster than sales. The company expects this profitable growth to continue for at least five years. Moreover, Sanofi plans to execute a share buyback program of €1B this year.
The strong guidance comes despite Sanofi (NASDAQ:SNY) undergoing a significant leadership change this month, with Belén Garijo taking charge as the company’s new chief executive officer on April 29.
With an impressive annual dividend yield of 5.04%, Sanofi (NASDAQ:SNY) was recently included in our list of the 15 Large-cap Stocks with Highest Dividends.
2. Ford Motor Company (NYSE:F)
Share Price as of April 17: $12.87
Forward P/E Ratio: 8.24
Ford Motor Company (NYSE:F) develops, delivers, and services Ford trucks, sport utility vehicles, commercial vans, and cars, and Lincoln luxury vehicles in the United States, Canada, the United Kingdom, Mexico, and internationally.
On April 14, UBS analyst Joseph Spak upgraded Ford Motor Company (NYSE:F) from ‘Neutral’ to ‘Buy’, while keeping the firm’s price target on the stock unchanged at $15. The target represents an upside of over 16% from the current price levels.
According to UBS, Ford’s earnings power is being underappreciated by investors, as the analyst sees a “credible path” for the carmaker to post an EPS of over $2 in 2027, up 17% from estimates. Beyond 2027, UBS expects Ford to move towards earnings of $3 per share, driven by its “product portfolio, a more lenient U.S. regulatory backdrop, combined with a more pragmatic EV strategy, an emerging battery energy storage system opportunity, and more focus on higher margin Pro software”.
Ford Motor Company (NYSE:F) is currently under pressure due to concerns over the ongoing higher gasoline and aluminum prices. However, UBS believes that these concerns are overdone, since aluminum prices are hedged and will not impact the company’s results this year.
1. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Share Price as of April 17: $20.45
Forward P/E Ratio: 7.79
Topping our list of the Best Affordable Blue Chip Stocks is Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), one of the largest oil and gas producers in the world. The Brazilian company is mainly dedicated to exploration and production, refining, energy generation, and marketing.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) received a boost on April 17 when BofA upgraded the stock from ‘Neutral’ to ‘Buy’, while also raising its price target from $18.70 to $24.80. The revised target, which indicates an upside of over 21% from the current levels, comes as the analyst firm incorporated its higher oil price deck into its model.
The oil and gas sector has posted a strong performance so far this year, driven primarily by soaring prices amid the Middle East conflict. However, the firm still sees an “appealing” dividend yield for 2026-27, even with many operators putting more cash into their capital expenditures.
With a robust annual dividend yield of 5.80%, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) was recently included in our list of the 15 Best High Yield Energy Stocks to Buy Right Now.
While we acknowledge the potential of PBR as an investment, 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 PBR and that has 100x upside potential, check out our report about the cheapest AI stock.
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