Best Blue Chip Stocks (January 2025)

For this screener, the filters “Market Cap > 550B” and “Stocks listed in the S&P 500 Index” have been used. 

Market Capitalization: A market cap greater than $550 billion ensures that only the largest, most financially secure companies are considered, highlighting their significant market influence and economic stability. 

S&P 500 Index Inclusion: By focusing on stocks listed in the S&P 500 Index, we narrow the selection to companies that are already recognized as leaders in their respective industries and have a strong track record of performance, further ensuring the reliability and quality associated with blue-chip stocks.

1. Microsoft Corporation (MSFT)

• Market Cap: $3,133.8 B
• Fair Value: $430.14
• Fair Value Upside/Downside: 2.1%

Microsoft Corporation is a global leader in software, services, devices, and solutions, known for its Windows operating system and Office productivity suite. The company also has a strong presence in cloud computing with its Azure platform.

2. Apple Inc (AAPL)

• Market Cap: $3,785.3 B
• Fair Value: $192.86
• Fair Value Upside/Downside: -23.1%

Apple Inc is a multinational technology company renowned for its innovative consumer electronics, including the iPhone, iPad, and Mac computers. It is also a leader in digital services and applications with platforms like the App Store and Apple Music.

3. NVIDIA Corporation (NVDA)

• Market Cap: $3,288.8 B
• Fair Value: $119.92
• Fair Value Upside/Downside: -11.7%

NVIDIA Corporation specializes in graphics processing units (GPUs) for gaming and professional markets, and is a pioneer in AI technology and data center solutions. Its products are widely used in supercomputing and autonomous vehicle applications.

4. Alphabet Inc Class A (GOOGL)

• Market Cap: $2,323.5 B
• Fair Value: $194.33
• Fair Value Upside/Downside: 2.7%

Alphabet Inc, the parent company of Google, dominates the online advertising market and is a leader in various tech fields including search engines, cloud computing, and artificial intelligence. Its diverse portfolio includes YouTube, Android, and the Google Cloud Platform.

5. Amazon.com Inc (AMZN)

• Market Cap: $2,306.9 B
• Fair Value: $212.35
• Fair Value Upside/Downside: -3.2%

Amazon.com Inc is a global e-commerce giant and a major player in cloud computing through its Amazon Web Services (AWS) division. The company also ventures into various sectors including digital streaming, artificial intelligence, and consumer electronics.

6. Meta Platforms Inc (META)

• Market Cap: $1,478.1 B
• Fair Value: $554.80
• Fair Value Upside/Downside: -6.2%

Meta Platforms Inc, formerly Facebook, Inc., operates the world’s largest social networking platforms including Facebook, Instagram, and WhatsApp. The company is also heavily investing in virtual and augmented reality through its Reality Labs division.

7. Eli Lilly and Company (LLY)

• Market Cap: $965.1 B
• Fair Value: $688.92
• Fair Value Upside/Downside: -10.8%

Eli Lilly and Company is a global pharmaceutical company known for its innovations in the development of treatments for diabetes, cancer, and mental health conditions. Its extensive product line includes biologics, small molecule drugs, and vaccines.

8. Broadcom Inc (AVGO)

• Market Cap: $1086.7 B
• Fair Value: $176.39
• Fair Value Upside/Downside: -23.9%

Broadcom Inc is a leading designer, developer, and global supplier of a broad range of semiconductor and infrastructure software solutions. Its products serve the data center, networking, software, broadband, wireless, and storage markets.

9. JPMorgan Chase & Co (JPM)

• Market Cap: $674.9 B
• Fair Value: $189.70
• Fair Value Upside/Downside: -20.9%

JPMorgan Chase & Co is one of the largest global financial services firms, providing a wide range of investment banking, financial services, and asset management. The company is a key player in the financial industry with a strong presence in commercial and consumer banking.

You can find blue chip stocks easily using Investing Pro. Here are the steps:

• Click on the Screener tool.
• Select ‘Market Cap as a filter parameter on the Screener page, and set the threshold value to greater than 550 billion.

• Add a filter for ‘Index Membership’ and select ‘is one of S&P 500’. 

• You can then see the list of all the companies falling in the desired screener filters’ range arranged in a descending order.

Blue chip stocks are shares in large, well-established, and financially sound companies that have operated for many years. They are known for their reliability, strong balance sheets, and ability to generate consistent returns for investors. 

The term “blue chip” originates from poker, where blue chips hold the highest value. Similarly, blue chip stocks are considered valuable and safe investments in the stock market.

1. Large Market Capitalization: These companies have a high market capitalization, often in the billions.
2. Strong Financial Performance: Consistent revenue growth, profitability, and strong financial statements.
3. Stable Earnings: They provide stable and often growing earnings over time.
4. Dividend Payouts: Many blue chip stocks pay regular dividends to their shareholders.
5. Reputable Brand: They have a strong brand presence and reputation in the market.
6. Industry Leaders: Typically, these companies are leaders in their respective industries.

1. Lower Risk: They are considered less risky compared to smaller, less established companies.
2. Steady Returns: Investors can expect steady, if not spectacular, returns.
3. Dividends: Many blue chip stocks pay dividends, providing a regular income stream.
4. Resilience: They tend to perform better during economic downturns compared to other stocks.

1. Growth Stocks: Blue chips offer slower, steadier growth compared to the rapid growth potential of growth stocks.
2. Small-Cap Stocks: Blue chips are less volatile and considered safer than small-cap stocks, which can be more speculative.
3. Dividend Stocks: Many blue chips are also dividend stocks, but not all dividend stocks are blue chips.

Yes, blue chip stocks can lose value, especially during market corrections or economic downturns. However, their strong fundamentals typically make them more resilient and quicker to recover compared to less established companies.

Blue chip stocks can provide stability and lower volatility, acting as a solid foundation in a diversified portfolio. They balance out the higher risk associated with other asset classes like small-cap stocks or high-growth investments.

Historically, blue chip stocks have provided consistent returns and have been able to weather economic downturns better than many other types of investments. They have a track record of long-term growth and stability.