3 Ignored Blue-Chip Stocks to Buy Before They Turn Red-Hot

Core Viewpoint - Investors are seeking undervalued asset classes, particularly blue-chip stocks, with expectations of rate cuts leading to increased fund flows into risky assets like commodities and energy [1][2] Group 1: Newmont Corporation (NEM) - Newmont's stock has remained stable despite a 12% increase in gold prices year-to-date, presenting a buying opportunity [3] - The company has a strong balance sheet with a cash buffer of $2.7 billion and operating cash flow of$776 million for Q1 2024, positioning it for potential dividend increases [3] - Newmont ended 2023 with 136 million ounces of gold, providing clear production and cash flow visibility, with a forward price-earnings ratio of 17.4 [4] Group 2: Occidental Petroleum (OXY) - Occidental's stock is currently undervalued despite previous high interest from investors like Warren Buffett, with macroeconomic challenges affecting its performance [6] - The company reported operating cash flow of $5.5 billion for 2023, allowing flexibility for dividends, share repurchases, and capital investments [6] - Occidental ended 2023 with reserves of four billion barrels of oil equivalent and a reserves replacement ratio of 137$3.5 billion and $2 billion respectively [8] - Vale has an annual free cash flow potential of$8 billion, supporting its ability to sustain dividends and invest in energy transition metals [9]