Blue-chip stocks are large, established companies with strong brand names and consistent dividends. Investors define them differently, but Morningstar’s list of best blue-chip stocks includes those with wide moat ratings, predictable cash flows, and undervalued prices. Top picks include Roche, Thermo Fisher Scientific, Merck, Danaher, and more, all with market caps over $100 billion.

Roche, the most undervalued on the list, is a Swiss healthcare giant with a focus on biologics and innovative pipeline. Thermo Fisher, a life science supplier, retains and grows its market share with strong long-term demand. Merck’s lineup of high-margin drugs and pipeline ensure strong returns on invested capital. Danaher, a medical tech company, offers differentiated technology protected by intangible assets. Taiwan Semiconductor, the only growth stock, benefits from AI, IoT, and high-performance computing growth.

Lockheed Martin, a defense contractor, operates the F-35 program with reliable revenue streams. Alphabet, the holding company of Google, has a diverse range of solutions generating significant cash flow. Sony, a consumer electronics giant, has transformed its business model for solid growth. Nestle, the largest food and beverage manufacturer, aims to reinvigorate growth through active portfolio management. PepsiCo, despite past missteps, benefits from tight retail relationships and steady top-line expansion.

Morningstar’s fair value estimate, style box, and capital allocation rating help investors assess potential investments. The Morningstar Investor screener is a useful tool to find blue-chip stocks that meet specific criteria. Consider managed products like ETFs or mutual funds focused on blue-chip stocks for a diversified investment approach. Morningstar provides valuable insights for investors looking to build a strong portfolio with blue-chip stocks.

Read more at Morningstar: 10 Best Blue-Chip Stocks to Invest in for the Long Term