Blue chip stocks generally refer to company stocks with excellent performance and stable development.
I think that after a long period of development, these companies generally have the following characteristics:
1) High market visibility
2) Have a strong reputation in the industry Comprehensive competitiveness
3) To differentiate from peers, the company's products must have core competitiveness
4) The company's products must have a high market share in the market
5) The advantage of operating scale has been formed
6) The company's annual profit data has grown steadily
7) The profit after tax per share is in the middle and upper position among all listed companies
8) Stocks whose ROA (return on net assets) index has increased significantly for three consecutive years after listing, has grown steadily, and has a return rate of more than 6%
Wuliangye and Kweichow Moutai are typical blue chip stocks.
Because blue chip listed companies have the above characteristics, they are loved by prudent investors with long-term plans.
Looking at the performance of blue chip stocks in the stock market, I personally think that blue chip stocks are like midfielders on the football field. When the team is attacking, they can go forward to assist, and when the team is defending, they can return to their own penalty area to assist. Defend! This is because the return on investment of blue chip stocks is high and stable, and the stock price generally does not fluctuate too much (except for extreme market conditions); when the market is in the early stages of a rising market, it will not be the mainstream hot spot in the market and lead the rising sector. When the rising trend is confirmed, Finally, the popular concept has already experienced a surge, and the blue chip stocks will begin to start steadily! When the market is in a downward channel, concept stocks that rely solely on theme speculation will be the first to fall sharply, and then other stocks will follow closely. At this time, the defensive nature of blue chip stocks will be well highlighted, and the stock price will be difficult to fall back significantly, and their ability to withstand declines will be relatively low. Strong, it is a typical defensive product.
Finally, let’s take a look at blue chip stocks from a technical perspective: From a technical structure perspective, blue chip stocks often reflect the characteristics of high position, high price, high market value, and high degree of lock-up. High degree of lock-up is to determine whether they can continue to be locked up. Basis recognized by funds or other financial institutions; once such stocks are no longer locked and the bottom chips are significantly reduced, then no matter how good the current performance is, do not open a position!
The above are just some of my views on blue chip stocks. I hope it can bring you some help. Thank you for your attention!