With the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) posting further gains on Tuesday, it's possible that the market has already begun to make its first steps towards its next bull run.
Given it's only a few weeks since investors were caught flat-footed by the shock Brexit vote, many investors will now be scrambling to position their portfolios to ride the markets higher.
If you're looking for blue-chip stocks to add to your portfolio, here are three that could be worth considering.
Rio Tinto Limited (ASX: RIO)
After suffering significant falls in the wake of the resource bust, over the past year Rio Tinto's share price has steadied. While the timing of an upswing in the commodity cycle is difficult to predict, the 2017 forecast price-to-earnings (PE) ratio of 22 times could represent bottom of the cycle pricing.
Woolworths Limited (ASX: WOW)
The share price of this supermarket retailer has been whacked by over 20% in the last 12 months but perhaps all of the bad news is now priced in.
Based on analyst consensus earnings forecasts, Woolworths should achieve higher earnings per share (EPS) in financial year (FY) 2017 compared with FY 2016. Based on this year's forecast, the stock is trading on a PE of 16 times.
AMP Limited (ASX: AMP)
As one of Australia's leading financial service providers, AMP is a key blue chip holding across many portfolios.
With the stock down 13% in the last year, now could be an attractive entry point considering the EPS growth outlook for the group.
According to one analyst consensus, EPS is forecast to increase from 36.75 cps in calendar year 2016 to 39.45 cps in 2017, implying a current year PE of 14.7 times.
