Investors seeking stability in the stock market should consider blue-chip stocks, particularly those priced under $50. These large-cap companies offer a diversified business model, which often leads to steadier earnings and revenue, making them less susceptible to market fluctuations. Recent research from Morgan Stanley indicates that U.S. large-cap stocks have outperformed small-cap stocks by approximately 62% over the past eight years. The trend of large companies consistently overshadowing their smaller counterparts has persisted since the early 2000s.
While many analysts view this performance gap as a reliable pattern, some experts, including those at T. Rowe Price, suggest that the current high valuations of many blue-chip stocks may signal a potential shift. Historical data shows that when high-quality stocks become too expensive, the likelihood of underwhelming returns increases significantly. This analysis raises questions about the sustainability of the current market dynamics.
Given this backdrop, we have identified 13 promising blue-chip stocks priced under $50, selected based on their market capitalization, analyst sentiment, and appeal to hedge fund investors.
Key Blue Chip Stocks to Consider
1. **Rogers Communications Inc. (NYSE:RCI)**
– **Hedge Fund Holders:** 18
– **Share Price:** $35.88
On December 10, Morgan Stanley raised its price target for Rogers Communications to C$50, maintaining an Underweight rating. The company reported a 4% year-on-year increase in revenue for Q3 2025, amounting to C$5.34 billion. Noteworthy achievements included the launch of Rogers Satellite, which now covers three times more geographic area than its competitors.
2. **Weyerhaeuser Company (NYSE:WY)**
– **Hedge Fund Holders:** 29
– **Share Price:** $23.03
Weyerhaeuser is collaborating with Aymium to produce sustainable biocarbon, aiming to generate 1.5 million tons annually. The company also saw a price target adjustment to $33 from $35 by Seaport Research, reflecting its third-quarter performance and future potential.
3. **Hormel Foods Corporation (NYSE:HRL)**
– **Hedge Fund Holders:** 32
– **Share Price:** $23.74
On December 9, Barclays decreased its price target for Hormel to $31, while maintaining an Overweight rating. The company reported a revenue increase to $3.2 billion, despite ongoing challenges related to inflation. Hormel is implementing cost-reduction strategies, including job cuts, to enhance profitability.
4. **Rivian Automotive, Inc. (NASDAQ:RIVN)**
– **Hedge Fund Holders:** 36
– **Share Price:** $17.50
Following a downgrade by Morgan Stanley, Rivian faces challenges amid a slowing electric vehicle market. The company launched its “Autonomy+,” a subscription service for self-driving features, which may appeal to consumers looking for innovative technologies.
5. **Alcoa Corporation (NYSE:AA)**
– **Hedge Fund Holders:** 40
– **Share Price:** $44.60
Alcoa recently saw its price target raised by JPMorgan to $45. The company reported a 3% revenue increase, driven by higher premiums on U.S. aluminum production. Alcoa is focused on expanding its operations and investing in sustainable practices.
6. **Huntington Bancshares Incorporated (NASDAQ:HBAN)**
– **Hedge Fund Holders:** 42
– **Share Price:** $17.56
After announcing an acquisition of Cadence Bank, Huntington is positioning itself for growth in attractive markets. The bank’s focus on organic growth and strategic integrations underlines its commitment to long-term success.
7. **Ford Motor Company (NYSE:F)**
– **Hedge Fund Holders:** 44
– **Share Price:** $13.40
Ford’s partnership with Renault aims to develop more affordable electric vehicles for the European market, addressing rising competition from other automakers. The company’s commitment to innovation is evident as it adapts to market demands.
8. **General Mills, Inc. (NYSE:GIS)**
– **Hedge Fund Holders:** 48
– **Share Price:** $45.70
General Mills is in the midst of transformation, focusing on profitable organic growth. Recent reports indicate a positive trend in retail sales, aided by price adjustments aimed at stimulating growth.
9. **Toast, Inc. (NYSE:TOST)**
– **Hedge Fund Holders:** 56
– **Share Price:** $35.40
Toast has shown impressive growth in revenue, up 34% year-on-year, as it solidifies its position in the restaurant technology market. Analysts view this stock as having significant upside potential, particularly in light of regulatory changes regarding interchange fees.
10. **Chewy, Inc. (NYSE:CHWY)**
– **Hedge Fund Holders:** 57
– **Share Price:** $35.37
The online pet product retailer is expanding its market share, with recent quarterly results showing an 8.3% revenue increase. Chewy’s acquisition of SmartEquine enhances its product offerings in the equine health market.
11. **Occidental Petroleum Corporation (NYSE:OXY)**
– **Hedge Fund Holders:** 62
– **Share Price:** $41.75
Occidental is undergoing strategic shifts, including the sale of its chemical division to Berkshire Hathaway for $9.7 billion. This move aims to strengthen its balance sheet and focus on core oil and gas operations.
12. **Chipotle Mexican Grill, Inc. (NYSE:CMG)**
– **Hedge Fund Holders:** 65
– **Share Price:** $33.90
Chipotle has begun implementing price increases in select markets as part of its strategy to enhance profitability. The company celebrated the opening of its 4,000th restaurant, marking significant growth in its operations.
13. **Pinterest, Inc. (NYSE:PINS)**
– **Hedge Fund Holders:** 66
– **Share Price:** $27.70
Pinterest recently announced plans to acquire tvScientific to enhance its advertising capabilities. Despite facing a mixed outlook, analysts remain optimistic about Pinterest’s potential growth in the evolving digital marketing landscape.
Investors interested in blue-chip stocks under $50 can find opportunities across a variety of sectors. These companies exemplify resilience and adaptability, making them attractive options for long-term investment strategies.
