Blue-chip stocks are shares of well-established, financially sound companies with a history of stable earnings. These companies are often market leaders or among the top in their sectors. Characterized by their large market capitalization, blue-chip stocks are known for their reliability and strong track record. They are often included in major stock indices.
Investing in blue-chip stocks offers several advantages. These stocks typically provide consistent dividends, contributing to steady income for investors. Their long-standing market presence suggests a lower risk of volatility. This makes them a popular choice for conservative investors. However, there are also disadvantages. Blue-chip stocks may have slower growth compared to emerging companies. Their size can limit their potential for rapid expansion.
When considering blue-chip stocks, investors should weigh their investment goals. These stocks can be a cornerstone for a long-term, stable portfolio. Yet, their conservative nature might not suit those seeking high growth rates. As with any investment, diversification is key. Keeping this on top of mind, let’s look at two blue chip stocks to watch in the stock market today.
Blue Chip Stocks To Buy [Or Avoid] Today
- McDonald’s Corporation (NYSE: MCD)
- Apple Inc. (NASDAQ: AAPL)
McDonald’s Corporation (MCD Stock)
Let’s start with McDonald’s Corporation (MCD). The company is a global fast-food chain, renowned for its hamburgers, fries, and quick-service meals. McDonald’s is one of the world’s largest restaurant chains, with outlets in over 100 countries. McDonald’s is known for its standardized menu items and for pioneering the franchise model in the fast-food industry.
Last month, McDonald’s Corporation announced its decision to acquire Carlyle’s minority ownership stake in the strategic partnership managing McDonald’s business in mainland China, Hong Kong, and Macau. The announcement, made on November 20, 2023, detailed that while the CITIC Consortium, primarily through CITIC Capital, would maintain its controlling 52% stake, McDonald’s would increase its stake from 20% to 48%. This move marks a significant adjustment in McDonald’s involvement in its Chinese operations.
In the last month of trading action, shares of MCD have advanced by 8.36%. Meanwhile, during Friday morning’s trading session, McDonald’s stock is trading slightly higher on the day so far by 0.72%, trading at $283.88 a share.
[Read More] 2 Dow 30 Stocks For Your December 2023 Watchlist
Apple (AAPL Stock)
Next, Apple Inc. (AAPL) is a multinational technology company that specializes in consumer electronics, software, and online services. Apple’s key products include the iPhone, iPad, Mac computers, and services like the App Store, Apple Music, and iCloud.
At the beginning of last month, Apple reported better-than-expected fourth-quarter 2023 financial results. Diving in, the company notched in earnings of $1.46 per share, along with revenue of $89.50 billion for Q4 2023. This is versus consensus estimates for the quarter which were earnings of $1.39 per share, with revenue estimates of $84.69 billion.
Over the last month of trading, shares of AAPL stock have gained by 9.29%. Moreover, during Friday morning’s trading session, Apple stock opened modestly higher by 0.11% so far, currently trading at $190.18 a share.
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