Motley Fool Picks 3 Blue Chips After Pullback, Citing Microsoft at 22 Times Forward Earnings
Updated
Updated · The Motley Fool · May 29
Motley Fool Picks 3 Blue Chips After Pullback, Citing Microsoft at 22 Times Forward Earnings
1 articles · Updated · The Motley Fool · May 29
Summary
Three large-cap stocks — Microsoft, Becton Dickinson and Clorox — were highlighted as post-pullback buys for investors seeking steadier returns, dividends and lower volatility than many growth names.
Microsoft, valued above $3 trillion, is down about 12% in 2026, leaving it at roughly 22 times forward earnings versus a five-year average near 30 despite concerns over rising AI-related capital spending.
Becton Dickinson was pitched as a defensive healthcare play: it makes more than 34 billion devices a year, launched 125 new products in 2025, yields 2.8% and trades at 11.7 times forward earnings.
Clorox shares have fallen more than 25% over the past year, lifting its dividend yield to 5.1% and cutting its forward P/E to 13, though higher oil prices are expected to trim quarterly gross profit by over $20 million.
The broader case is that established dividend payers with discounted valuations may hold up better if markets weaken further, while still offering long-term upside and shareholder returns through payouts and buybacks.