What does low valuation blue chips mean

Low valuation blue chips are stocks that are below the overall market P/E ratio or industry P/E ratio, and these are stocks that have a track record of stable surpluses. Common stocks of companies that are able to pay regular and relatively generous dividends and are recognized as good performers.

Blue chip stocks refer to the stable cash dividend policy on the company's cash flow management has a high demand, usually will be better operating results, with stable and high cash dividend payments of the company's stock is called "blue chip". Blue chips are mostly large, traditional industrial and financial stocks with stable long-term growth. The term "blue chip" originated in Western casinos, where there are three colors of chips, of which blue chips are the most valuable.