10 Oversold Blue Chip Stocks To Buy

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In this article, we will be taking a look at 10 oversold blue chip stocks to buy. To skip our detailed analysis of current market conditions, you can go directly to see the 5 Oversold Blue Chip Stocks To Buy.

The markets have been full of surprises so far this year. With rampant inflation and recession concerns, investors expected to see more of a market slowdown in the first half of 2023. Instead, they got hit with a multi-month stock rally, led primarily by large-cap technology stocks piggybacking off of the artificial intelligence boom. At the same time, the Federal Reserve first skipped a rate hike in June, offering some breathing room for the economy. This move was followed by a July rate hike. Throughout this all, the US also narrowly avoided a debt-ceiling crisis, while the global community has been facing rising geopolitical tensions, drastically increased energy and oil prices, and much more.

Stock Performance In August

With this backdrop in mind, the current market conditions we are seeing are not all too surprising. Some of the stocks that have continued to perform well in this economy primarily include reliable blue chip names, such as Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG), and The Procter & Gamble Company (NYSE:PG), among several others. At the same time, other companies are also continuing to pull their weight in an effort not to be left in the dust by the competition. However, even the companies that have been doing well have begun to face a slowdown come August. On August 2, for instance, many of the top S&P 500 performers were down by an average of 3%, according to CNBC's Closing Bell for the day.

In the face of all this, investors may be worried about where to put their money when no place really gives them a certainty of profit. However, at a time when the economy is slowing down, it becomes increasingly important to note where one can find better investment opportunities, even among beaten-down stocks. In this context, looking at stocks that are traditionally considered to be oversold may make for a smart investment strategy. Chris Grisanti, the Chief Equity Strategist and Senior Portfolio Manager at MAI Capital Management, said something along similar lines in a CNBC interview from April. Here are some of his comments:

"It's a really tough market. I do think the economy is like a car speeding down a cul-de-sac with really no place to go. Things are really, I think, set to slow down over the summer. So what we think, instead of buying broadly or expecting growth in the usual areas, let's find the good companies that have already gotten the stuffing knocked out of them."