3 Blue-Chip Stocks to Buy at a 52-Week Low in July

Core Viewpoint - Major indexes are reaching new highs, yet notable blue-chip stocks are underperforming, trading near their 52-week lows, presenting potential investment opportunities [1][2]. Group 1: McDonald's (MCD) - McDonald's shares have fallen approximately 14.5% in 2024, underperforming the broader market [3]. - Concerns over affordability due to rising fast-food prices and a modest same-store sales growth of 1.9% in Q1 have contributed to the stock's decline [3][4]. - Despite the recent dip, MCD trades at 20.8 times this year's expected earnings per share (EPS), below its historical average, indicating potential for upside as EPS growth is anticipated to accelerate [4]. Group 2: Northrop Grumman (NOC) - Northrop Grumman's stock has declined 8% year-to-date, despite its strong historical performance and a track record of 20 consecutive years of dividend increases, with a compound annual growth rate (CAGR) of 11.9% over the past decade [6][7]. - The company is well-positioned to benefit from increased global defense budgets due to rising geopolitical tensions, making its current stock price near 52-week lows attractive for investors [7]. Group 3: General Mills (GIS) - General Mills has seen a stock decline of about 15% over the past year, trading near its 52-week lows [8][10]. - The company is considered recession-proof, with stable cash flows from well-known brands, and has maintained its dividend since 1990, despite a temporary halt in increases from 2018 to 2020 [9][10]. - Currently, General Mills has a price-to-earnings (P/E) ratio of 14 times based on FY2024's consensus EPS estimate of $4.49, along with a solid 3.8% yield, making it a compelling investment opportunity [10].