When investors seek quick returns, they often turn to high-growth stocks. However, blue-chip stocks, known for their stability, can also surprise by outperforming expectations within a specific period. A notable example has been Nvidia (NASDAQ: NVDA), which has seen a remarkable 73% surge year-to-date and a staggering 257% increase over the last 12 months. Today, we delve into three non-technology blue-chip stocks that hold promise for offering substantial returns by delving into the reasons to be bullish about their future prospects.
Embracing the Potential of Barrick Gold (GOLD)
Positive sentiments surround the gold market, with the metal surpassing $2,100 per ounce. The macroeconomic landscape, coupled with factors like inflation and geopolitical tensions, are anticipated to drive gold prices higher. Amidst the array of blue-chip gold mining stocks, Barrick Gold (NYSE: GOLD) stands out as an appealing choice. Despite remaining flat in the past 12 months, GOLD stock is poised for a significant breakout in the near future.
Barrick Gold boasts a robust portfolio of six tier-one assets globally, including a strategic copper asset. The company has consistently delivered growth projections in gold and copper production until 2027. With anticipated higher realized prices and production levels, Barrick Gold is set to generate substantial free cash flows.
Unleashing the Strength of AT&T (T)
AT&T (NYSE: T) has faced a prolonged period of depression but appears significantly undervalued with a forward price-earnings ratio of 7.7. Additionally, the stock offers an enticing dividend yield of 6.54%. Despite its recent struggles, AT&T is primed for potential upside as its business developments continue on a positive trajectory.
In 2023, AT&T showcased its financial prowess with $16.8 billion in free cash flow. The company’s guidance for 2024 anticipates a range of $17 to $18 billion in free cash flow, providing ample room for dividends and debt reduction. As AT&T strengthens its credit metrics and drives growth in subscriber numbers through focused investments, the stock is expected to climb higher in value.
Revving Up with Ford (F)
Ford (NYSE: F) emerges as another undervalued blue-chip stock for investment consideration, trading at a forward price-earnings ratio of 6.7. With strong sales figures to back its potential, F stock is projected to experience significant growth in the upcoming quarters.
Amid Ford’s transformation towards hybrid and electric vehicles (EVs), the company reported delivering 11,042 EVs in the U.S. in the first two months of 2024, marking a 25.9% year-on-year increase. Furthermore, hybrid vehicle sales surged by 36.7% to 23,202 during the same period. Ford’s focus on EVs and hybrids is yielding favorable outcomes, translating into anticipated sales growth and subsequent stock value appreciation.
Looking ahead, Ford’s outlook for 2024 foresees adjusted free cash flows of $6 to $7 billion after factoring in potential capital expenditures. This optimistic projection reflects the company’s financial resilience and flexibility, paving the way for continued growth and shareholder value enhancement.
On the date of publication, the author did not hold any positions in the securities mentioned. The opinions expressed are solely those of the writer.