Blue-Chip Buccaneers: 3 Industry-Leading Stocks at Prices You Can Plunder (2024)

The market rally remains uneven. While technology stocks and shares of companies directly involved in artificial intelligence continue to push higher, many other stocks are lagging the market’s performance. This is especially true among stocks of blue-chip companies and value stocks.

Shares of mature companies, those that are growing slower, have not kept pace, as the overall market hits all-time highs. In short, growth stocks are beating value stocks and have since the current bull market began 18 months ago.

The good news for investors is that this uneven performance has presented a buying opportunity.

Stocks of great companies can be purchased now for a bargain. Here are blue-chip buccaneers: three industry-leading stocks at prices you can plunder.

Lululemon (LULU)

The stock of Lululemon (NASDAQ:LULU) is enjoying a nice pop after the athletic apparel maker reported first-quarter financial results that topped Wall Street forecasts.

LULU stock went up after the company announced EPS of $2.54, versus $2.38 that was expected among analysts. Revenue of $2.21 billion beat consensus expectations of $2.19 billion. Quarterly sales were up 10% from a year earlier. The company also announced that it’s adding $1 billion to its current stock buyback program.

Despite the beat, Lululemon reported that its sales in North America continue to slow. The company is still growing in North America, albeit at a reduced rate. During Q1, sales in the U.S. and Canada increased 3%, compared to a 17% rise a year earlier.

In terms of guidance, Lululemon expects conditions to improve in the second half of this year. For all of 2024, Lululemon forecasts earnings of $14.47 per share and revenue of $10.80 billion.

The guidance was largely in line with Wall Street forecasts. Despite the post-earnings gain, LULU stock remains down more than 35% on the year, presenting a buy-the-dip opportunity for investors.

Costco Wholesale (COST)

Costco Wholesale (NASDAQ:COST) has reported that its sales rose 8.1% in May from a year earlier to $19.60 billion. On a month-over-month basis, Costco’s sales also increased from April, when the company reported 7.1% growth.

Management said the sales growth continues to be driven by e-commerce, with online sales rising 15.3% year-over-year in May. Costco is one of the few public companies that still reports monthly sales figures.

In-person same-store sales during May climbed 6.4% higher from a year ago, after rising 5.6% in April. On May 30, the warehouse club reported its latest quarterly results that showed revenue of $57.40 billion for the first three months of the year, a 9.1% year-over-year increase. Earnings for the quarter came in at $3.78 a share, beating analysts’ consensus estimates of $3.70.

COST stock has gained about 30% so far in 2024 and is up 62% in the last 12 months.

Lowe’s (LOW)

Home improvement retailer Lowe’s (NYSE:LOW) stock hasn’t budged much compared to January, floating at around -1% year-to-date.

Trading at 13 times future earnings estimates, the shares look a little undervalued right now, considering also that the company continues to post financial results that beat Wall Street forecasts.

Plus, LOW stock pays a decent quarterly dividend of $1.15 per share, providing investors with a yield of 2.12%.

For this year’s first quarter, Lowe’s reported EPS of $3.06, which was better than the $2.94 expected among analysts. Revenue amounted to $21.36 billion versus $21.12 billion that had been forecast. Sales were down 4% from a year earlier, marking the fifth consecutive quarter that Lowe’s posted a year-over-year sales decline. Executives at the retailer said they continue to struggle with a pullback in spending by consumers.

If there’s a silver lining, it’s that Lowe’s sales to professional contractors and its online sales, continue to grow. The company maintained its full-year guidance that calls for full-year sales of $85 billion and EPS of $12.30. Over the last 12 months, LOW stock has risen only about 1.5%.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.