In this article, we discuss 5 blue chip stocks to buy that are down over 30% YTD. If you want to see more blue chip stocks to buy that are down over 30% YTD, the risk/reward, and methodology of this list, go directly to 12 Blue Chip Stocks to Buy That Are Down Over 30% YTD.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 89
Year to Date Performance as of 12/26: -48.30%
NVIDIA Corporation (NASDAQ:NVDA) is a leader in GPUs that should benefit from the increasing demand for AI processing in the future if GPUs manage to continue to be better at some processing than CPUs for certain AI tasks.
Given the rising inflation this year, however, GPU end markets have been weaker than expected and demand for NVIDIA Corporation (NASDAQ:NVDA) hasn’t met estimates. As a result, the stock is down 48.30% year to date.
Although the stock still has a forward P/E ratio of 35.3, NVIDIA Corporation (NASDAQ:NVDA) does have substantial EPS growth potential past next year if it keeps up its technological innovation.
89 hedge funds in our database owned shares of the stock at the end of September, ranking NVIDIA Corporation (NASDAQ:NVDA) #5 on our list of 12 Blue Chip Stocks to Buy That Are Down Over 30% YTD.
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 112
Year to Date Performance as of 12/26: -43.18%
Given the company is a blue chip with quality assets, The Walt Disney Company (NYSE:DIS) shares aren’t normally as volatile as they have been for 2022.
Given some of The Walt Disney Company (NYSE:DIS)’s outperformance in past years has been due to Disney+’s expected future growth, the decline this year has at least partly been as a result of decreasing valuations in tech companies. Higher than expected costs and macroeconomic headwinds have not helped The Walt Disney Company (NYSE:DIS) this year either.
Nevertheless, The Walt Disney Company (NYSE:DIS) has quality assets that could allow it to bounce back in the long term.
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Year to Date Performance as of 12/26: -37.92%
Much has been written about OpenAI’s ChatGPT and how it could affect Alphabet Inc. (NASDAQ:GOOG)’s search market share in the future. While there could be more competition in the future in search, Alphabet Inc. (NASDAQ:GOOG) does have AI technology that’s as good or perhaps better than ChatGPT but the company hasn’t released it because it isn’t really accurate yet.
In the future, the new markets AI could create could offer substantially bigger opportunities for Alphabet Inc. (NASDAQ:GOOG) than search. If Alphabet Inc. (NASDAQ:GOOG) successfully innovates in AI, there’s potential to increase EPS in the long term.
As it stands, the stock is more high risk/high reward than before as the market will want to see how Alphabet Inc. (NASDAQ:GOOG) reacts to the new competition.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Year to Date Performance as of 12/26: -64.91%
Meta Platforms, Inc. (NASDAQ:META) is down substantially this year given the social media giant has spent a lot of money on the metaverse without getting much in the way of immediate results. Meanwhile, Meta Platforms, Inc. (NASDAQ:META) faces rising competition from TikTok and its growth has slowed substantially.
Considering Mark Zuckerberg owns controlling shares of the company, Meta Platforms, Inc. (NASDAQ:META)’s fortunes will ultimately depend on his management. Given a company with Meta Platforms, Inc. (NASDAQ:META)’s resources, Zuckerberg can make a few mistakes in the near term and still win the long term, however. Meta Platforms, Inc. (NASDAQ:META) looks cheap with a forward P/E ratio of 14.86 in terms of the next 10 years if it retains its users.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Year to Date Performance as of 12/26: -48.87%
As a result of rising inflation, e-commerce demand for Amazon.com, Inc. (NASDAQ:AMZN) has slowed and corporate spending on the cloud has been more cautious than before. As a result, Amazon.com, Inc. (NASDAQ:AMZN) shares have declined 48.87% year to date.
If the Federal Reserve wins its battle against inflation in the long term, demand for Amazon.com, Inc. (NASDAQ:AMZN) could bounce back and the company’s stock could also benefit. At the end of Q3, 269 hedge funds in our database owned shares of Amazon.com, Inc. (NASDAQ:AMZN), ranking the stock #1 on our list of 12 Blue Chip Stocks to Buy That Are Down Over 30% YTD.
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