Blue-chip stocks are shares of large, well-established companies with strong financial positions, leading market positions, and often long operating histories. They are generally considered less risky than shares of smaller companies, though their prices can still fluctuate, and investors can lose money.
Blue-chip companies have historically shown greater resilience during market downturns than smaller businesses, supported by strong balance sheets, steady revenue, and global operations. Still, their shares can fall significantly during periods of market stress. Many also pay regular dividends, offering investors an additional source of income. Mostly, these companies are best investment options for bear markets.
The recent market environment has given investors more reasons to consider large, established companies. Interest in artificial intelligence (AI) has driven much of the recent stock market rally, but concerns about stretched valuations are growing. On October 9, Reuters reported that US companies were expected to post another quarter of strong earnings growth, with AI-related companies accounting for much of the gains.
Also take a look at: 10 Best ARK Stocks to Buy Right Now
While investors remain optimistic about AI-driven earnings growth, questions persist about how long the trend can continue and what could happen to stock prices if momentum fades. For beginner investors, understanding these risks is especially important. Here are some key investing lessons to help beginners navigate an uncertain market.
Analysts have also raised concerns about the sustainability of the AI rally. Jim Cramer recently acknowledged worries about high AI valuations and comparisons with the dot-com bubble. Rather than moving away from a trade that continues to drive much of the market’s gains, Cramer said he favors blue-chip companies with strong businesses and management teams that can find new ways to benefit from AI.
That said, Wall Street ended higher on October 9 as investors looked ahead to the start of third-quarter earnings season and upcoming inflation data, which could offer clues about the Federal Reserve’s next policy decision. All three major US stock indexes advanced that day and recorded weekly gains. According to LSEG data, analysts estimated that S&P 500 companies would report aggregate earnings growth of 30.6% for the July-September quarter. Energy and technology were expected to lead, with year-over-year earnings growth of 123% and 66.5%, respectively.
At the same time, consumer sentiment has weakened. According to the University of Michigan, Americans’ near-term economic expectations fell to an all-time low in October. With consumers accounting for about 70% of the US economy, this decline adds another concern for investors assessing the outlook for corporate earnings.
Given this backdrop, we will take a look at some of the best blue-chip stocks under $100.
Image by Alexsander-777 from Pixabay
Our Methodology:
To list the 10 Best Blue Chip Stocks Under $100 to Buy Now, we sifted through a screener to shortlist the companies that have a market cap of $10 billion and above, and that trade at less than $100 per share. From this pool, we focused on established companies with strong market positions and solid financial performance. Finally, the stocks are arranged in ascending order of their hedge fund sentiment, as of Q2 2026.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 88
Share Price as of the close on October 9: $86.16
Also read: CVS Health (CVS) vs Cigna (CI): Which is a Better Stock to Buy?
9. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 80
Share Price as of the close on October 9: $77.3
Read more: NextEra Just Landed a $22 Billion Project. The Part Investors Can’t See Yet Is What Matters
8. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 75
Share Price as of the close on October 9: $82.73
Read GM’s analysis here: General Motors (GM) Warns of Tougher US Competition as China Risks Build
7. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 56
Share Price as of the close on October 9: $61.6
6. The Southern Company (NYSE:SO)
Number of Hedge Fund Holders: 55
Share Price as of the close on October 9: $86.17
Read more: Southern Company (SO): A New AI Data Center Play For Long-Term Investors?
5. Tyson Foods, Inc. (NYSE:TSN)
Number of Hedge Fund Holders: 45
Share Price as of the close on October 9: $53.43
Also read: Tyson Foods (TSN)’s Beef Woes Put the Recovery Story to the Test
4. Brown & Brown, Inc. (NYSE:BRO)
Number of Hedge Fund Holders: 44
Share Price as of the close on October 9: $62.88
3. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 41
Share Price as of the close on October 9: $55.50
Take a look at: Philip Morris (PM) Bets $1.2B on ZYN as BAT (BTI) Steps Up Its Pouch Push
2. Fifth Third Bancorp (NYSE:FITB)
Number of Hedge Fund Holders: 35
Share Price as of the close on October 9: $50.64
Read the company’s dividend story here: This Underrated Bank Stock Just Raised its Dividend for the 11th Straight Year
1. Edison International (NYSE:EIX)
Number of Hedge Fund Holders: 34
Share Price as of the close on October 9: $55.30
Read more: PG&E (PCG) and Edison (EIX) Sink After California Wildfire Liability Deal Falls Apart
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This article is originally published at Insider Monkey.
