5 Blue Chips Trading at Bargain Prices

Investors who missed the remarkable 40% market rally since early March might think they've been priced out of the action -- that there are no more bargains to be had. Indeed, the forward price/earnings multiple of the S&P 500 has shot up nearly 24% since March to 16 from just 13. And, alas, it's not difficult to find market watchers who say U.S. equities are overpriced.

Fortunately this hasn't been an equal-opportunity rally, market professionals say, leaving some marquee names trading at compelling valuations. "From the March bottom, in every single sector, lower quality is outperforming higher quality," says Hank Smith, chief investment officer of equity at Haverford Investments in Haverford, Penn.

That's typical market behavior when it is anticipating a recovery, Smith says, leaving lots of big names out there for the taking on the cheap. "There are tremendous bargains in high-quality, blue-chip growth companies," he says. "Investors have an opportunity to get great companies in which they can be confident of being long-term shareholders."

SmartMoney spoke with the pros to suss out opportunities among some of biggest and best-known names around. From technology to consumer staples to financials, here, then, is a look at five blue-chip bargains for the next three to five years.