Blue-Chip Bargains: Top 3 Oversold Aristocrats for Value Investors

Rick Orford

Tue, Nov 14, 2023, 9:23 PM 4 min read

West Pharmaceutical Services (WST)

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The first dividend aristocrat in our list is West Pharmaceutical Services (NYSE:WST), a leading manufacturer of highly advanced delivery and containment systems for injectable products. WST partners with top biotechnology and pharmaceutical companies to ensure safe and efficient delivery systems. The company offers solutions that range from proprietary packaging, integrated services, containment solutions, and automated assembly, to name a few.

West Pharmaceutical previously announced its West Ready Pack, combining West’s highest-quality proprietary stoppers, seals, and vials to form a complete containment solution. The company experienced a sharp drop after announcing its financial results. However, this means West Pharmaceutical trades at a price point that income investors may find attractive.

WST announced its net sales growing 8.8% while organic net sales growth was 5.7%. Company earnings beat analyst estimates by 16.13%. Diluted EPS also grew by 34.6%, and adjusted diluted EPS by 6.4%. The strong results boosted WST’s EPS guidance and helped its board members increase its dividend by 5.3%. This marks the company’s 31st consecutive annual dividend increase. This makes West Pharmaceutical even more attractive and a part of our top oversold Dividend Aristocrats to buy now.

Genuine Parts (GPC)

A photograph of the inside of a factory showing machinery and conveyer belts representing AIMC Stock.

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Genuine Parts Company (NYSE:GPC) is an industrial and automotive parts replacement service company that distributes these parts mainly in North America, Australasia, and Europe. The company’s replacement parts include bearings, hoses, electrical and mechanical transmissions, and pneumatic components.

While the business model may sound simple, the company has strategically positioned itself as one of the industry’s most reliable auto parts companies. It has partnered with major companies like Alphabet to optimize its data and technology initiatives. It has also acquired Recambios y Accesorios Gaudí, S.L. (Gaudi) in Spain to expand its industry leadership.

Despite its lackluster price performance this year, GPC’s drive to improve its financials from its strategic initiatives and geographic diversity has paid off. The company’s diluted EPS is up 11.7% from 2022, slightly beating analyst estimates by 3.75%. Further, sales increased by 2.6% YoY. If we look closely at its segment’s performance, the company’s automotive business grew by 3.9% while industrial sales grew by 0.6%.

Genuine Parts is driven to improve margins despite the slow growth environment. The company has increased its EPS guidance in line with its positive performance. With strong performance and an attractive price point, GPC is one of our top dividend aristocrats to buy.

Johnson & Johnson (JNJ)

Negative Press Presents a Buying Opportunity with JNJ Stock

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Johnson & Johnson (NYSE:JNJ) is the last company on our list. It is synonymous with healthcare and has a reputation as a household name. The brand does not need an introduction to most people, as its products can be seen in major supermarkets, hospitals, and pharmacies.

It owns products like Listerine and Band-Aid. The company is a healthcare research giant operating in several areas within the sector and is at the forefront of innovations. While the company has been in a downtrend since August, its price action over the last few weeks showed signs of a potential reversal after hitting bottom at $144.95 and an oversold signal that allowed buyers to step in and get JNJ at desirable levels. No wonder analysts rate JNJ as a “Buy.”

In terms of results, JNJ reported a sales growth of 6.8% and an increase in EPS of 4.3% in the last quarter. Earnings also beat analysts’ estimates by 5.56%. This strong performance catalyzed JNJ to increase its full-year guidance on EPS and revenue. The company has increased its focus on innovating medical and medtech solutions by delivering medical breakthroughs.

With these factors considered, it’s one of those oversold blue-chip stocks to buy.

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.