5 Best Blue Chip Stocks to Buy in November 2021

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

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

  1. Walmart (NYSE: WMT)

wallmart is a good blue chip stock in november

Walmart is the world’s largest brick-and-mortar company. The stock has been trading sideways this year and is up only about 3% this year, underperforming the markets. The stock has a dividend yield of 1.45% which is only slightly above the S&P 500’s dividend yield. With a market cap of over $420 billion, and a strong brand, Walmart is among the best blue-chip stocks that you could buy in November 2021.

Goldman Sachs added WMT to its conviction list

Goldman Sachs added WMT to its conviction list. “After several years of investment (largely in ecommerce and its supply chain) weighing on profitability, we think WMT is now in a position to grow EBIT dollars along with continued investments due to the greater scale of its ecommerce business today, improving mix, and growth from higher margin ancillary businesses like advertising,” said Goldman Sachs analyst Kate McShane in her note.

WMT is among the best blue chip retail stocks

If you are looking to buy a blue chip stock in the retail industry, WMT looks a good bet. The stock trades at an NTM (next-12 months) PE multiple of 23.9x which looks reasonable considering the aggressive pivot towards e-commerce.

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  1. Berkshire Hathaway (NYSE: BRK.B)

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

berkshire is a good blue chip stock to buy

Berkshire Hathaway is a conglomerate blue chip company

Berkshire Hathaway is a diversified conglomerate that has interests in diverse industries like insurance, energy, railroads, and aircraft components. The stock is outperforming the markets this year after the massive underperformance in 2019 and 2020. Berkshire would release its earnings tomorrow which would provide us insights into the company’s buybacks in the quarter.

The company is sitting on a massive cash pile and in absence of compelling investment opportunities, it has been using the cash to repurchase its own shares. To sum it up, Berkshire Hathaway is among the all-time favorite blue chip stock which can bring stability and market-beating returns to the portfolio over the long term.

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  1. Apple (NYSE: AAPL)

Apple stock is up around 14% in 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 fiscal fourth quarter as it lost $6 billion in sales during the quarter due to the chip shortage. Meanwhile, there are several short-term and long-term triggers that can take the stock higher.

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

The chip supply situation could gradually improve and Qualcomm expects the situation to get better in the first half of 2022. The chipmaker also forecasted that the demand-supply situation should get stabilized in the second half of 2022. Earlier this week, UBS reiterated the stock as a buy. “Although the iPhone 13 is more evolutionary than revolutionary, continued global investments in 5G and aggressive promotions by carriers supports a solid demand backdrop,” it said in its note.

Over the long term, 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 for the short as well as the long term.

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  1. Square (NYSE: SQ)

If you are looking to buy a blue chip stock in the fintech industry, Square could be a good bet. The company reported its earnings yesterday which were below estimates and pointed to slowing growth. However, the long-term growth trajectory for the company looks strong. The company has been diversifying its business and bitcoin is becoming a key driver of the earnings.

Square is among the best blue chip fintech stocks

There aren’t a lot of blue chip companies in the fintech space as many of them only recently listed. However, Square is a blue chip stock in the industry. The company believes 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 a low single-digit market share in both these ecosystems but is gradually increasing the market share. Apart from millennials, the company is also targeting older demographics now.

If you want to hold a growth blue chip stock, Square looks among the best bets. The fall after the earnings release looks like a good opportunity to buy this quality blue chip stock.

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  1. Intel (NYSE: INTL)

Intel stock is trading flat for the year and is underperforming the markets by a wide margin. The stock slumped after missing its third-quarter earnings estimates. However, if you are looking at a beaten-down blue chip stock, Intel stock should definitely be on your radar.

Insiders are buying this blue chip stock

Meanwhile, this week insiders have bought $4.75 million worth of Intel stock according to InsiderScore.com. This is among the biggest buying by insiders in Intel stock. The stock’s valuation indeed looks compelling and it trades at an NTM PE multiple of only about 13.9x.

If you are looking at a reasonably valued blue chip stock that even company insiders are buying, Intel looks a good fit.

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About Mohit PRO INVESTOR

Mohit Oberoi is a freelance finance writer based in India. He has completed his MBA in finance as a major. He has over 15 years of experience in financial markets. He has been writing extensively on global markets for the last eight years and has written over 7,500 articles. He covers metals, electric vehicles, asset managers, tech stocks, and other macroeconomic news. He also loves writing on personal finance and topics related to valuation.