It’s not often that blue-chip stocks go “on sale.” Yet, amidst a stock market sell-off that’s been ramping up since the start of the year, there are more than a few bellwether stocks up for grabs at discounted prices. Here’s a look at 9 blue-chip stocks that are down since the start of 2022, but have become attractive investments as a result of the recent downturn. 

1. 3M Company (NYSE: MMM)

One of the country’s oldest companies and a powerful multinational conglomerate corporation, 3M Company should be on every investor’s wish list at its current price. The stock is down more than 18% to start the year and currently hovers at a forward P/E of 13: a meager figure for a company that pulls in $35 billion in annual sales. The company’s balance sheet is in good standing, meaning it’s poised to rebound quickly when the sell-off ends. 

2. Colgate-Palmolive Company (NYSE: CL)

Down more than 11% this year, Colgate-Palmolive isn’t just a strong play in the consumer defensive sector; it’s also a Dividend Aristocrat with a healthy 2.4% payout. While the company is still a little overweight by some metrics (it has a P/B of +100), it offsets this with outstanding return on equity and gross margin figures. This is one to keep an eye on as it forms a bottom and stabilizes.

3. Capital One Financial Corporation (NYSE: COF)

Capital One has shed about 15% since the beginning of the year, but there’s still a clear bullish case for the company to recover and rebound as the sell-off tapers down. The company’s balance sheet is pristine: it carries a debt-to-equity of 0.75, has a profit margin of 45% and is primed for sales of more than $25 billion. With P/E and forward P/E figures below 10, this is a rare price for a stellar stock. 

4. Mastercard Inc. (NYSE: MA)

Mastercard is another financial stock that’s fallen on hard times as the result of a broad-market sell-off. Yet, it’s one any investor should be excited to purchase at its current levels. The company will quickly rebound after the sell-off thanks to operating margins of 53% and a profit margin that hovers around 46%. Sales are also up 26% according to the company’s most recent earnings. While it’s still trading with a P/E of 35, it’s down more than 20% from 52-week highs.  

5. Pfizer Inc. (NYSE: PFE)

After a 30% spike in 2021, Pfizer stock has returned to earth in 2022. Share prices are down more than 16% year to date, yet a look at the company’s prospects make it difficult to understand why. It offers a 3.37% dividend, has a P/E of 8.7 and enjoys a 25% margin on sales, which topped $81 billion in 2021. While forecasts put the company’s profits lower in 2022, there’s no reason to disregard the fundamentals of this healthcare mega corporation.

6. Cisco Systems Inc. (NASDAQ: CSCO)

Down more than 13% in 2022 so far, Cisco is another stalwart stock that’s in an exceptional position to shine for the foreseeable future. It carries little to no debt, has excellent ROI and ROE, enjoys healthy margins on its products and continues to be a leader in its space. Many investors fear it will only pace the major indices in 2022, which has driven the bearish downtrend so far this year. Yet, investors looking for a safe haven play will enjoy the company’s healthy 2.79% dividend and relative operational stability. 

7. Home Depot Inc. (NYSE: HD)

Home Depot is down more than 22% year to date. The fall from grace comes in the wake of its most recent earnings call, on which the company expressed fears of flat sales in 2022. Supply chain woes persist and the company finds itself scrambling to keep shelves stocked. Yet, there’s a lot to love about Home Depot long-term: especially at this price. Beyond its dividend, the company has great leadership and long-term initiatives in-place to alleviate supply chain constraints domestically. 

8. Nike Inc. (NYSE: NKE)

While many investors shy away from consumer cyclical companies during market sell-offs, Nike remains an exception. Down 26% this year, investors who like the company for its fundamentals will never find a better time to open a position. On paper, its value is actually still slightly inflated; however, it’s justifiable by the company’s success as a global player—especially in emerging markets. Its healthy operating margins and steady sales figures tell the story of a company that’ll rally post-market sell-off.  

9. SAP (NYSE: SAP)

Investors in SAP have seen shares take a haircut of ~25% this year. Yet, there’s an opportunity to double-down on a company that dominates in the enterprise software space. Based in Germany, there’s added potential for international exposure in owning SAP stock. The company has room to run after the sell-off, with $30 billion in sales and a healthy 18% profit margin to propel its recovery. Investors should wait for a bottom to form or for the free-fall of tech stocks to stop before opening a position. 

Consider the Potential of Stocks That Are Down

While investor trepidation remains high as the market continues to trend lower, these stocks represent companies that have proven themselves time and again as market stalwarts. Some are Dividend Aristocrats; others have proven leadership; and all of them stand poised to rebound from the current sell-off in a position to benefit long-term shareholders. Which one will you add to your watchlist?