2 Blue Chip Stocks Under $20 to Buy Now

NYSE: F | Ford Motor Co. News, Ratings, and Charts

F – Increasing concerns about a recession due to the Fed’s intention to raise rates aggressively are expected to keep the stock market under pressure. Therefore, it could be wise to invest in fundamentally sound blue-chip stocks Ford Motor (F) and Cenovus Energy (CVE), which are currently under $20, to ensure stable returns. Keep reading….

While a slight decline in inflation and better-than-expected corporate earnings helped the stock market recover in July and earlier this month, the potential continuation of interest rate hikes has increased market volatility. The benchmark stock indexes witnessed declines in the last two weeks, and the S&P 500 is still down 15% year to date.

Federal Reserve Chairman Jerome Powell said the central bank would continue raising interest rates further to bring inflation down to its 2% target. Senator Elizabeth Warren said she is very worried” about a potential recession after the Federal Reserve once again hiked interest rates to tame inflation.

Amid this uncertain backdrop, investing in blue-chip stocks could be wise. Blue chip stocks are issued by companies that are market leaders. Their broader market reach and pricing power help them perform steadily, irrespective of economic conditions. These stocks are known for their dependable earnings and stable returns.

We think under-$20 blue-chip stocks Ford Motor Company (F - Get Rating) and Cenovus Energy Inc. (CVE - Get Rating) could be ideal additions to one’s portfolios amid the current uncertain market conditions.

Ford Motor Company (F - Get Rating)

F designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. It has three operational segments: Automotive, Mobility, and Ford Credit.

For the second quarter ending June 30, 2022, F’s total revenues increased 57.1% year-over-year to $37.91 billion. Its operating income amounted to $2.87 billion compared to an operating loss of $22.00 million in the prior-year quarter, while its net income grew 18.9% from its prior-year quarter to $667.00 million. The company’s non-GAAP adjusted EPS increased 423.1% year-over-year to $0.68.

The consensus EPS estimate of $0.52 for the third quarter ending September 2022 represents a 1.3% year-over-year growth. Analysts expect revenue to increase 13.1% year-over-year to $37.57 billion for the same period. The stock has gained 19.5% over the past year and 22.9% over the past month to close the last trading session at $15.41.

F’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

The stock also has a B grade for Value, Sentiment, and Growth. Within the Auto & Vehicle Manufacturers industry, it is ranked #18 of 65 stocks.

To see additional POWR Ratings for Stability, Quality, and Momentum, click here.

Cenovus Energy Inc. (CVE - Get Rating)

CVE develops, produces, and markets crude oil, natural gas liquids, and natural gas in Canada, the United States, and the Asia Pacific region. The company operates through Oil Sands, Conventional, Offshore, Canadian Manufacturing, U.S. Manufacturing, and Retail segments.

Recently, CVE announced the commencement of tender offers to purchase for cash certain of its outstanding series of notes for an aggregate purchase price, excluding accrued and unpaid interest, of up to $1.5 billion.

This month CVE has reached an agreement to purchase bp’s 50% interest in the bp-Husky Toledo Refinery in Ohio. CVE has owned the other 50% of the refinery since its combination with Husky Energy in 2021.

In the second quarter ended June 30, CVE’s cash from operating activities increased 118% year-over-year to $2.98 billion. Its net earnings grew 986% from its year-ago value to $2.43 billion, while its EPS rose to $1.19 from $0.11 a year ago. The company’s adjusted funds flow improved 70.5% from its prior-year quarter to $3.1 billion.

The consensus EPS estimate of $0.93 for the third quarter ending September 2022 represents a 199.7% improvement year-over-year. Analysts expect revenue to increase 47.9% year-over-year to $16.03 billion for the same quarter.

CVE has gained 136.8% over the past year and 55.8% over the past nine months to close the last trading session at $19.30.

CVE’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our rating system. The stock also has an A grade for Momentum and a B for Value and Growth. Within the B-rated Energy – Oil & Gas industry, it is ranked #17 of 97 stocks.

In total, we rate CVE on eight different levels. Beyond what we’ve stated above, we have also given CVE grades for Stability, Quality, and Sentiment. Get all CVE ratings here.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


F shares were trading at $15.47 per share on Monday afternoon, up $0.06 (+0.39%). Year-to-date, F has declined -23.88%, versus a -14.32% rise in the benchmark S&P 500 index during the same period.


About the Author: Spandan Khandelwal


Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
FGet RatingGet RatingGet Rating
CVEGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Trump or the Fed More Important to Stock Investors?

The S&P 500 (SPY) is flirting with new highs once again. But it is not very clear what is driving these stock price gains. That is why Steve Reitmeister shares his latest views including a market outlook, trading plan and top picks to stay on the right side of the action.

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

Read More Stories

More Ford Motor Co. (F) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All F News