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3 Blue-Chip Stocks to Buy Amid Global Conflicts

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High volatility in markets due to geopolitical and trade tensions have made investors jittery over the past couple of months. The ongoing trade war with China, Russia’s active involvement in developing nuclear weapons and fresh dispute with Saudi Arabia over a journalist’s murder have given rise to conflicts that the United States doesn’t have immediate respite from.

While a majority of smaller companies were directly or indirectly affected by the global disputes, blue-chip stocks remain firm due to their large capitalization, financial stability and unwavering growth. A crucial reason behind blue-chip stocks’ steady performance could be their global presence that provides the necessary stability amid market turbulence.

Therefore, it could be a good idea to invest in some blue-chip stocks at present. Although these stocks can’t always be credited for higher returns, their slow but stable growth earns them brownie points during economic slumps.

Global Mayhems Affecting Wall Street

The Middle-East has always been an origin of global disputes. The disputes have made their way into financial markets, resulting in high unpredictability. Earlier this year, Iran threatened to close key oil transit routes in the region, inviting further stringent U.S. sanctions on the nation. U.S. sanctions on Iranian oil go into effect from Nov 4, which could severely impact oil stocks and related industries.

Recently, Wall Street plummeted when Treasury Secretary Steven Mnuchin refused to participate in an investment summit in Saudi Arabia. Saudi journalist Jamal Khashoggi’s murder was the reason behind Mnuchin’s decision. The United State’s relations with the Middle-Eastern nation have not been peaceful since then.

The U.S.-Russia dispute that commenced last week with President Donald Trump taking U.S. out of a nuclear pact with Russia affected the financial markets as well.

Why Invest in Blue-Chip Stocks Now?

A blue-chip company’s key strength is financial stability that helps generate stable returns for investors. The steady nature of these stocks protects investors from sudden dips prompted by global conflicts.

Although strong changes in the financial markets could affect blue-chip stocks too, they have low volatility in general. The consistent growth and timely dividend payouts are a steady way to generate returns from the stocks.

Stocks to Buy

Here are some top blue-chip stocks for you to invest in.

Archer Daniels Midland Company (ADM - Free Report) procures, transports, stores, processes, and merchandises agricultural commodities and products. U.S. trade war with China had a severe effect on the nation’s agriculture industry as China cut down farm product orders drastically, but Archer Daniels’ price performance has improved 2.2% since Jul 6, pointing to the company’s stability despite the dispute.

The company’s shares have gained 19.2% year to date and its earnings are expected to grow 41.5% for the current year. Archer Daniels carries a Zacks Rank #1 (Strong Buy).

Although analysts were skeptical about the impact of U.S.-China trade war on technology giants, Microsoft’s (MSFT - Free Report) shares have gained 5% since Jul 6.

Microsoft’s earnings are expected to grow 9.8% for 2018 and its shares have gained 24.2% year to date. The company carries a Zacks Rank #1.

You can see the complete list of today’s Zacks #1 Rank stocks here.

American Express Company (AXP - Free Report) has an enormous merchant base since it is the largest card-issuer globally. American Express’ shares have gained 3.3% since the U.S.-China trade war commenced.

The company’s earnings are expected to grow 25.5% for 2018 and its shares have gained 2.6% since the beginning of this year. American Express carries a Zacks Rank #2 (Buy).

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