Stocks to buy

3 Blue-Chip Stocks to Buy as They Face Backlash and Boycotts

With increased anger at major publicly traded enterprises going “woke,” blue-chip stocks facing backlash represent a real phenomenon. For example, big-box retailer Target (NYSE:TGT) added to its woes when it succumbed to controversy over its Pride merchandising plans. According to a corporate spokesperson, Target experienced threats, forcing the removal of the most contentious items.

Now, Target might be a bad example of top blue-chip stocks to buy amid backlash and boycotts because of other non-wokeness-related problems, including organized retail crime and a slowing consumer economy. However, other large-scale businesses that took a hit due to ideological controversies may offer discounted opportunities.

Fundamentally, my hypothesis comes down to Americans generally being optimistic people. Basically, it’s difficult to sustain a grudge over belief systems that have become rather mundane in modernity. After all, it’s 2023, not 1923. Plus, Americans have been through much, much worse, from being advantaged by their once-trusted financial institutions to having their personal identities compromised. Eventually, the pitchforks subside and it’s back to eating nachos and watching football. Here are some ideas for investing in blue-chip stocks with boycotts.

BUD Anheuser-Busch $57.15
ADDYY Adidas $83.40
DIS Disney $88.29

Anheuser-Busch (BUD)

Source: Shutterstock

Anger continues to brew against Anheuser-Busch (NYSE:BUD), arguably the most controversial among blue-chip stocks facing backlash. To quickly recap, Anheuser’s Bud Light brand entered into a partnership with social media influencer Dylan Mulvaney. She’s known for documenting her gender transition and being a voice for the LGBTQ community. However, many on the right took issue with Anheuser and the drama has yet to die down.

Just in the past month, BUD stock slipped 14%. Subsequently, the red ink turned what was a decent start to the year into a loss. Adding to the pressure, rival beer companies have taken advantage of the situation. So, why would BUD rank among the top blue-chip stocks to buy? As I said earlier, it’s difficult to stay angry over an issue that largely doesn’t affect anyone. But beyond that, Bud Light is incredibly popular as a product. In 2020, it represented the top selling beer in the U.S. and not because it tastes good (it doesn’t). Let’s be real – Bud Light is cheap.

Moreover, should economic conditions worsen, people will seek to imbibe not on the expensive stuff but the least-pricey option available. That’s Bud Light.

Adidas (ADDYY)

Source: Shutterstock

A global favorite among athletes and gopniks, Adidas (OTCMKTS:ADDYY) doesn’t natively carry a reputation for being woke. In fact, the company features a history that some kids on the internet these days might consider “based.” However, in an apparent bid to be more relevant to certain social trends, Adidas launched an advertisement featuring a male model in women’s swimwear.

Inherently, the images jarred several consumers, provoking a harsh response. Similar to Anheuser, ADDYY has now become one of the blue-chip stocks with boycotts attached to its name. To be honest, the Adidas controversy will probably take more time to resolve. As an athletic apparel maker, the contentious ad aligns with a broader debate about biological males identifying as women playing in women’s sports. Still, this too shall pass. As one of the most famous brands in the world, it’s a shame that it’s one of the blue-chip stocks facing backlash. However, the power of its brand should eventually win consumers over.

To be sure, it might not have been smart for management to kick the hornet’s nest during this vituperative era. But ultimately, nothing looks quite as good as an Adidas tracksuit.

Disney (DIS)

Source: Shutterstock

When it comes to blue-chip stocks facing backlash, Disney (NYSE:DIS) can write volumes of encyclopedias about the topic. Last year, Disney faced backlash from advocacy groups for failing to voice opposition to Florida’s Parental Rights in Education act. When it eventually did, Governor Ron DeSantis raised perdition, taking on the House of Mouse. In particular, he sought to eliminate some of Disney World’s benefits associated with its special tax district.

At first, it appeared that the Magic Kingdom would let this matter go. However, in a battle of legal gamesmanship, Disney stripped the DeSantis-picked board that would have overseen Disney World governance of its power. Of course, with the Republicans in heated competition to act tough, DeSantis continued to throw barbs at the entertainment giant. Ironically, it’s been quite a show to watch. Indeed, DIS is the king of blue-chip stocks facing backlash, doubling down on its perceived wokeness. Last year, it also committed the crime of changing Ariel’s race.

As with Adidas, Disney has a challenging battle on its hands. However, nobody does entertainment quite like the Magic Kingdom, especially since they control several popular science-fiction franchises. So, in my view, DIS is a long-term discounted buy.

On the date of publication, Josh Enomoto 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

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