6 Blue Chip Stocks Trading Well Below Their Highs
2026-10-16 09:30
•Jennifer Saibil •The Motley Fool
••••••••• ••••••••• Axe Cap view
Global Blue Chips: Look Closely Before You Leap
Six major US blue chips trade well below highs, but the value story is mixed and caution is key.
Many international blue chips like Pfizer and Intel have pulled back sharply, tempting investors with promised bargains. But a low price alone doesn’t mean value. Nike, for example, faces slowing sales and increased competition—this isn’t a name to jump into lightly. Pfizer offers a decent 6% yield and pipeline potential, making it attractive if investors can stomach the valuation. Intel’s AI lift looks promising but profitability issues linger, so its rally might be premature. As for heavyweights like Goldman Sachs and Home Depot, they trade closer to fair value and reflect mixed news: strong earnings offset by rate volatility and economic uncertainty. For South African investors, the USD/ZAR is critical here. If the rand weakens against the greenback, these counters get more expensive for local buyers. Watching the rand around 18.50 will be crucial. We prefer a cautious stance, favouring quality local banks like Nedbank and Standard Bank where dividend yields are more stable and the economic link clearer. this is just our opinion and not financial advice
Avoid Nike and be selective on Intel; consider Pfizer for dividend income but only allocate a small portion. Prefer South African banks for steadier payouts and watch USD/ZAR closely before increasing offshore exposure.
- Pfizer
- Intel
- USD/ZAR
- Nedbank
- Standard Bank
- Continued rand depreciation raising offshore costs
- Global interest rate volatility impacting earnings
6/10
Six major blue-chip stocks—Nike, Goldman Sachs, Intel, Disney, Pfizer, and Home Depot—are trading at least 20% below their all-time highs despite a strong bull market. The article analyzes each stock to determine whether they represent bargains or value traps, considering factors like valuation metrics, competitive pressures, and market sentiment.
Our take is based on reporting first published by The Motley Fool.