Undervalued blue-chip stocks offer a higher margin of safety than most stocks. That extra margin can minimize an investor’s losses during stock market corrections and market cycles with sharp volatility. However, minimizing losses doesn’t mean avoiding big gains.
It’s possible to take less risk and set your portfolio up for a greater upside with an asymmetric risk-reward setup. Blue-chip stocks that exhibit rising revenue and profit margins are more likely to deliver long-term gains for shareholders. These undervalued blue-chip stocks offer plenty of promise.
Walmart (WMT) Walmart (NYSE: WMT ) sees a steady stream of customers due to its affordable prices and wide selection of groceries. The stock trades at a 34 P/E ratio while offering a 1.26% yield for investors.
Walmart has typically maintained a low dividend growth rate, but the company recently announced its highest dividend hike in more than a decade . The company’s annual dividend currently stands at $0.83 per share, and recent financial results suggest that a higher growth rate is here to stay.
Walmart’s revenue increased by 6.0% year-over-year in the first quarter of fiscal 2025 . Adjusted EPS increased by 22.
4% year-over-year. Domestic sales increased by 4.6% year-over-year while international net sales were up by 12.
1% year-over-year. Walmart’s continued expansion into international markets can accelerate growth for several years. The company’s successes with e-commerce and advertising can also transl.