In this article, we discuss the 5 best blue-chip stocks to invest in. If you want to read our detailed analysis of these companies, go directly to the 15 Best Blue Chip Stocks to Invest In.
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5. UnitedHealth Group Incorporated (NYSE: UNH)
Number of Hedge Fund Holders: 105
UnitedHealth Group Incorporated (NYSE: UNH) is a healthcare company based in Minnesota that ranks 5th on the list of 15 best blue-chip stocks to invest in. UnitedHealth Group Incorporated (NYSE: UNH) offers health benefit plans, health care services, and pharmacy care services.
On July 20, UnitedHealth Group Incorporated (NYSE: UNH) announced its strategic partnership with New York-based interactive fitness platform Peloton Interactive, Inc. (NASDAQ: PTON). UnitedHealth Group Incorporated (NYSE: UNH) will begin providing free access to Peloton Interactive, Inc.’s fitness programs to 4 million fully insured commercial members on September 1st. UnitedHealth Group Incorporated (NYSE: UNH) had its stock rise 1.5% last month.
Following the strong Q2 earnings report, Stephens analyst Scott Fidel maintained an Overweight rating on UnitedHealth Group Incorporated (NYSE: UNH) and increased its price target to $460 per share from $440 previously.
The company has a market cap of $394 billion. In the second quarter of 2021, UnitedHealth Group Incorporated (NYSE: UNH) reported an EPS of $4.70, beating estimates by $0.24. The company’s second-quarter revenue came in at $71.3 billion, an increase of 15% year over year, and beat revenue estimates by $1.77 billion.
UnitedHealth Group Incorporated (NYSE: UNH) currently pays its shareholders an annualized dividend of $5.80 per share and offers a dividend yield of 1.39%.
At the end of the second quarter of 2021, 105 hedge funds in the database of Insider Monkey held stakes worth $13.1 billion in UnitedHealth Group Incorporated (NYSE: UNH), up from 89 in the preceding quarter worth $12.1 billion.
In its Q2 2021 investor letter, ClearBridge Investments mentioned UnitedHealth Group Incorporated (NYSE: UNH) and discussed its stance on the firm. Here is what the fund said:
“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience, and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.
UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”
4. JPMorgan Chase & Co. (NYSE: JPM)
Number of Hedge Fund Holders: 108
JPMorgan Chase & Co. (NYSE: JPM) is a global financial service provider and it ranks 4th on the list of 15 best blue-chip stocks to invest in. The New York-based commercial bank offers investment banking, commercial banking, and asset management services.
On July 14, Credit Suisse analyst Susan Roth Katzke maintained an Outperform rating on JPMorgan Chase & Co. (NYSE: JPM) and raised the stock’s price target to $177 per share from $170, citing wide-ranging revenue upside as the reason for the raise.
JPMorgan Chase & Co. (NYSE: JPM) established a passive bitcoin fund for its Private Bank clients in the first week of August, according to a recent report. Shares of JPMorgan Chase & Co. (NYSE: JPM) jumped 6% in the previous month.
The company has a market cap of $479 billion. In the second quarter of 2021, JPMorgan Chase & Co. (NYSE: JPM) reported an EPS of $3.78, beating estimates by $0.61. The company’s revenue in the second quarter came in at $30.5 billion and beat revenue estimates by $762.45 million.
JPMorgan Chase & Co. (NYSE: JPM) currently pays its shareholders an annualized dividend of $3.60 per share and offers a dividend yield of 2.24%.
At the end of the second quarter of 2021, 108 hedge funds in the database of Insider Monkey held stakes worth $4.93 billion in JPMorgan Chase & Co. (NYSE: JPM), down from 111 in the preceding quarter worth $5.25 billion.
3. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 112
Media and entertainment giant The Walt Disney Company (NYSE: DIS) ranks 3rd on the list of 15 best blue-chip stocks to invest in. The California-based media company runs domestic cable channels including ESPN, National Geographic, FX, and Disney. The Walt Disney Company (NYSE: DIS) also owns and operates all of the Disneyland theme parks and resorts, as well as the Disney Cruise Line.
On August 27, Deutsche Bank analyst Bryan Kraft maintained a Buy rating and a $200 price target on The Walt Disney Company (NYSE: DIS), citing a solid growth outlook with direct-to-consumer sales expected to grow at a rate of 25% through fiscal 2024. Shares of The Walt Disney Company (NYSE: DIS) jumped 1.4% on August 27 after ESPN announced plans to license its brand to major sports-betting operators for at least $3 billion, according to a report from The Wall Street Journal.
The company has a market cap of $327 billion. In the third quarter of fiscal 2021, The Walt Disney Company (NYSE: DIS) reported an EPS of $0.80, beating estimates by $0.25. The company’s revenue in the quarter grew 45% year over year to $17.02 billion and beat revenue estimates by $261.22 million. At the end of the third quarter, The Walt Disney Company (NYSE: DIS) had nearly 174 million subscriptions across Disney+, ESPN+, and Hulu.
At the end of the second quarter of 2021, 112 hedge funds in the database of Insider Monkey held stakes worth $10.8 billion in The Walt Disney Company (NYSE: DIS).
In its Q2 2021 investor letter, RiverPark Funds mentioned The Walt Disney Company (NYSE: DIS) and discussed its stance on the firm. Here is what the fund said:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar, and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films, and 15 Disney and Pixar series.
Now that the disruption in its theme park, cruise, and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”
2. Berkshire Hathaway Inc. (NYSE: BRK-B)
Number of Hedge Fund Holders: 116
Berkshire Hathaway Inc. (NYSE: BRK-B) is a Nebraska-based holding company managed by Warren Buffett and it ranks 2nd on the list of 15 best blue-chip stocks to invest in. Berkshire Hathaway Inc. (NYSE: BRK-B) operates in insurance, transportation, energy, and consumer markets.
UBS analyst Brian Meredith kept a Buy rating on Berkshire Hathaway Inc. (NYSE: BRK-B) and raised the stock’s price target to $329 per share from $319 previously, citing the company’s better-than-expected Q2 results driven by a cyclical recovery.
The company has a market cap of $646 billion. Berkshire Hathaway Inc. (NYSE: BRK-B) stock increased 0.6% on August 9 after the company reported a 21% increase in second-quarter operating earnings of $6.7 billion. In the second quarter of 2021, Berkshire Hathaway Inc. (NYSE: BRK-B) reported an EPS of $2.93, beating estimates by $0.28. The company’s second-quarter revenue came in at $69.11 billion and beat revenue estimates by $5.70 billion. The stock has gained 23.2%, year to date and 31% in the past twelve months.
At the end of the second quarter of 2021, 116 hedge funds in the database of Insider Monkey held stakes worth $22.4 billion in Berkshire Hathaway Inc. (NYSE: BRK-B), up from 111 in the preceding quarter worth $19.9 billion.
1. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 162
Topping the list of 15 best blue-chip stocks to invest in is Visa Inc. (NYSE: V). The San Francisco-based payments technology company offers digital payment solutions to clients globally. Visa Inc. (NYSE: V) also offers card products and value-added services.
On August 17, JPMorgan analyst Tien-Tsin Huang kept an Overweight rating on Visa Inc. (NYSE: V) and increased the stock’s price target to $267 per share from the previous $249.
Visa Inc. (NYSE: V) saw its stock rise 1.3% on August 23 after the company announced its purchase of “CryptoPunk,” a non-fungible Ethereum token worth nearly $150,000.
The company has a market cap of $507 billion. In the third quarter of fiscal 2021, Visa Inc. (NYSE: V) reported an EPS of $1.49, beating estimates by $0.14. The company’s revenue in the quarter grew 27% year over year to $6.13 billion and beat revenue estimates by $272.5 million. The stock has gained 7% in the past twelve months.
At the end of the second quarter of 2021, 162 hedge funds in the database of Insider Monkey held stakes worth $27.6 billion in Visa Inc. (NYSE: V).
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