The more ferocious a bear market the more tempting to for long term investors to buy the best stocks trading at surprising discounts. Now we have an interesting predicament. If you believe the new bull market is now awakening, then you will want to buy these stocks now before they rise too much.
However, if you are a still a bear, then you patiently wait for the prices on these stocks to come down a bit more and then pounce as the discount won’t last for long.
Either way, here are 4 quality blue chips to buy when you think the time is right: Visa Inc (V), Berkshire Hathaway (BRK.B), Enterprise Products Partners LP (EPD) and Proctor & Gamble (PG).
Visa Inc (V)
It’s true that people are limiting their shopping to essential items during this time of quarantine and unrest about the future. This is not a positive for Visa and it’s electronic payment peers. That said, e-commerce is stronger than ever, and there is little doubt that the American consumer will revert back to their former shopping habits once they’re given the all-clear.
This creates a great opportunity to get on board V shares with one of the most consistent track records of growth and share price outperformance. That is why V is up 99% in the last 3 years and 174% in the past 5. Right now V is currently trading at $173.69 and top adviser Jeff Cantwell of Guggenheim is currently forecasting a price target of $230.00. That makes V a mighty appealing growth and value story at this time.
Berkshire Hathaway (BRK.B)
In many ways Berkshire is a blue chip made up of blue chips given all the quality companies that Warren Buffet and his team have acquired over the years. Because of the high levels of cash that BRK.B has stockpiled, they are better positioned than most to take advantage of this most recent market dip. Buffet has been sitting on the sidelines thus far, but based on past performance, Berkshire Hathaway will likely emerge from this crisis stronger than ever as they buy find profitable ways to deploy that pile of cash.
With a current listing price of $193.84 and an analyst price target of $262, that gives plenty of reason for investors to consider one of the most consistent performers in BRK.B.
Enterprise Products Partners LP (EPD)
Yes, the oil market has collapsed and is currently at historical lows. That has dealt serious punishment to EPD and most others in the energy ecosystem. That said, OPEC+ is currently working through production guidelines, and are signaling a substantive decrease. EPD operates in the natural gas and liquid natural gas (LNG) sectors; specifically the storage and transport of both. This sector will come back as sure as day follows night. So it is best to buy EPD shares in the current darkness of the 41% decline for shares year to date.
I am not alone in this positive opinion of EPD. With the current price @ $16.38, and analyst consensus on a target price is at $24.60 that is quite compelling. Even more impressive is Michael Lapides over at Goldman forecasting $36 as the proper target for shares. And here is the best part, you get a dividend yield north of 10% as you wait for the industry to get back on track. That is ample reason that a long term investor would consider this 35 billion market cap industry leader at this time.
Proctor & Gamble (PG)
Consumer products behemoth PG has always been a Buy when the going gets rough as it is now. That because this company has an assortment of staples in American households. Yet even still shares are down on the year.
Note that PG is divided into five sectors, Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. Each of which is typically a strong performer throughout times of uncertainty. (Best known brands are among those that you have in your home: Crest, Pampers, Prilosec, Always, and Old Spice. )
With a Strong Buy consensus and a forecasted price target of $130, the current price of $115 looks even better for long term investors. And, oh yeah, don’t forget the 2.6% dividend yield which helps pad your final return.
Want More Great Investing Ideas?
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V shares closed at $173.69 on Friday, down $-1.25 (-0.71%). Year-to-date, V has declined -7.43%, versus a -13.06% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More…
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