5 best Blue Chip stocks to buy in November 2021

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While small cap stocks and pennies can be multi-baggers, some investors prefer the stability of blue-chip companies. These are companies that have a strong position in their respective sectors and often pay dividends.

Meanwhile, it’s not that blue-chip stocks haven’t delivered good returns. Over the past decade, they have provided stellar returns. Here are the five best blue chip stocks you can buy in November 2021.

  1. Walmart (NYSE: WMT)

Walmart is the world’s largest brick and mortar company. The stock has traded sideways this year and has only risen by around 3% this year, underperforming markets. The stock has a dividend yield of 1.45%, which is only slightly higher than the dividend yield of the S&P 500. With a market capitalization of over $ 420 billion and a strong brand, Walmart is among the best blue chip stocks you could buy in November 2021.

Goldman Sachs added WMT to list of convictions

Goldman Sachs has added the WMT to its list of convictions. “After several years of investment (mainly in e-commerce and its supply chain) weighing on profitability, we believe that WMT is now able to increase its EBIT as well as continued investments due to the larger scale from its e-commerce business today, improved mix and growth in higher-margin ancillary businesses such as advertising, ”said Kate McShane, analyst at Goldman Sachs, in her memo.

WMT is among the best blue chip retail stocks

If you are looking to buy some blue chip stocks in the retail sector, WMT seems like a good bet. The stock is trading at an NTM multiple PE (over the next 12 months) of 23.9x, which seems reasonable given the aggressive pivot to ecommerce.

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  1. Berkshire Hathaway (NYSE: BRK.B)

Berkshire Hathaway is not only a blue chip stock per se, but has also invested in several blue chip companies including Apple and Amazon. The company is led by the legendary Warren Buffett, who is arguably one of the best investors of all time. If you’re looking to buy a stock that gives you diversified exposure to the US economy, BRK.B should be on your radar.

berkshire is a top notch good stock to buy

Berkshire Hathaway is a premier conglomerate

Berkshire Hathaway is a diverse conglomerate with interests in various industries such as insurance, energy, railroads and aircraft components. The stock is outperforming the markets this year after the massive underperformance of 2019 and 2020. Berkshire would report its results tomorrow, which would give us a snapshot of the company’s buybacks in the quarter.

The company sits on a huge pool of cash and, in the absence of attractive investment opportunities, has used that cash to buy back its own shares. In summary, Berkshire Hathaway is one of the all-time favorite blue-chip stocks that can bring stability and above-market returns to the portfolio over the long term.

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  1. Apple (NYSE: AAPL)

Apple stock is up about 14% for the year and is the second worst performing FAANG stock of the year. It was the best performing FAANG in 2019 and 2020. The company missed sales estimates in the fourth quarter of the fiscal year as it lost $ 6 billion in sales in the quarter due to the chip shortage. . Meanwhile, there are several short and long term triggers that can drive the stock up.

Apple is also a good blue chip stock in the short term

The chip supply situation could gradually improve and Qualcomm expects the situation to improve in the first half of 2022. The chipmaker also forecast that the supply and demand situation is expected to improve. stabilize in the second half of 2022. Earlier this week, UBS reiterated the stock as a buy. “Although the iPhone 13 is more scalable than revolutionary, continued global investments in 5G and aggressive promotions by carriers support a strong demand environment,” he said in his memo.

In the long run, the foray into electric vehicles and the continued strength of the services business would support Apple’s earnings as well as its valuation multiples. Overall, APPL looks like a good blue chip stock to buy in November, both short and long.

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  1. Square (NYSE: SQ)

If you’re looking to buy a blue chip stock in the fintech industry, Square could be a good bet. The company yesterday announced its results below estimates and indicated slower growth. However, the company’s long-term growth trajectory appears solid. The company is diversifying its business and bitcoin is becoming a key driver of profits.

Square is among the best blue-chip fintech stocks

There aren’t many blue chip companies in the fintech space, as many of them have only recently been listed. However, Square is a blue chip action in the industry. The company estimates that the TAM (Total Addressable Market) for the seller app is $ 100 billion while its $ 60 billion for the Cash app. Currently, the company has single-digit market share in these two ecosystems, but is gradually increasing its market share. Besides millennials, the company is now also targeting the elderly.

If you want to own top-notch growth stock, Square is one of the best bets. The fall after the results are published seems to be a good opportunity to buy this top-notch stock.

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  1. Intel (NYSE: INTL)

Intel stock is trading flat for the year and is significantly underperforming the markets. The stock collapsed after missing its third-quarter earnings estimates. However, if you’re looking at a declining top-notch stock, the Intel stock should definitely be on your radar.

Insiders buy this blue chip stock

Meanwhile, this week, insiders bought $ 4.75 million in Intel shares, according to InsiderScore.com. This is one of the biggest insider buys in Intel shares. The stock’s valuation does indeed appear convincing and it is trading at an NTM PE multiple of only around 13.9x.

If you’re looking at some reasonably priced blue chip stock that even company insiders are buying, Intel seems like a good choice.

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About Mohit PRO INVESTOR

Mohit Oberoi is a freelance financial writer based in India. He completed his MBA with a specialization in finance and also holds a CFA charter. He has over 14 years of experience in the financial markets. He has written extensively on world markets over the past seven years and has written over 7,500 articles. It covers metals, electric vehicles, asset managers, technology stocks and other macroeconomic news. He also enjoys writing on personal finance and valuation related topics.


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