A blue chip stock is one that carries a certain cachet, as a stock of a company that's stable, well-capitalized, consistent, steady, established, high-quality, and a market leader with a great brand -- among other descriptors. 

Blue chip stocks have become significantly more popular over the past 18 months or so, as investors have been attracted to their stability in a time of major market turmoil. While there are a lot of excellent blue chips out there, one in particular is a screaming buy because of its low valuation. Here's why Bank of New York Mellon (NYSE: BK) is a bargain right now.

The main thing to understand about Bank of New York Mellon, or BNY Mellon, is that it isn't a traditional consumer bank like most of its big bank competitors -- it is a custody bank.

Continue reading

Source Fool.com