3 Top Blue-Chip Stocks to Buy for 2024

Susan Dziubinski: Hi. I’m Susan Dziubinski with Morningstar. Investors often own blue-chip stocks at the core of their portfolios. What are blue-chip stocks? Blue-chip stocks are the stocks of large, well-established, and financially sound companies that are leaders in their industries. They also tend to generate dependable earnings and often pay consistent dividends. They’re often considered less risky, too, given their financial stability.

Today, we’re looking at three blue-chip stocks that are trading at least 20% below what Morningstar thinks they’re worth. We think these are top blue-chip stocks to buy today.

3 Top Blue-Chip Stocks to Buy for 2024

1. Taiwan Semiconductor Manufacturing TSM
2. Roche RHHBY
3. Comcast CMCSA

The first blue-chip stock on our list is Taiwan Semiconductor Manufacturing TSM. TSMC is the world’s largest dedicated contract chip manufacturer. Morningstar awards the company a wide economic moat rating, which suggests that the company will maintain its competitive advantages for 20 years or more. Over time, the company has generated more-stable earnings than many of its peers and has prioritized paying a dividend. TSMC should continue to benefit from the rise in high-performance computing and generative artificial intelligence. We think the stock is worth $139 per share.

Our next blue-chip stock to buy is Roche RHHBY. We think this Swiss pharmaceutical giant has carved out a wide economic moat with its drug portfolio and its industry-leading diagnostics. We expect Roche to continue to achieve growth even as its blockbusters face competition, thanks to the company’s focus on biologics and its innovative pipeline. Roche announced plans to acquire private biotech Carmot Therapeutics; this pickup could allow Roche to eventually become a significant player in the rapidly growing market for obesity drugs. We think the stock is worth $59 per share.

Our last undervalued blue-chip stock to buy is Comcast CMCSA. The company’s core cable business enjoys significant competitive advantages. However, growth in Comcast’s cable business has slowed, and we expect it to continue to slow. And while we expect NBCUniversal’s unique assets to play a significant role in the media landscape of the future, Comcast will likely deliver only modest growth with strong cash flow for the foreseeable future. A solid balance sheet has allowed Comcast to aggressively repurchase shares and pay decent dividends. We think the stock is worth $60.

For more stock insights, be sure to subscribe to Morningstar’s channel and visit Morningstar.com.

Morningstar director Mike Hodel, strategist Karen Andersen, and analyst Phelix Lee provided the research behind this segment.

Watch “2 Stocks to Buy Now to Play a Top Investing Trend in 2024″ for more from Susan Dziubinski.