A number of blue-chip stocks are attractive because many investors are looking for quality names at this point, Aquiles Larrea, Founder and CEO of Larrea Wealth Management, told The Schwab Network this afternoon. Among the stocks in this category that he's bullish on are Caterpillar (CAT) and Altria (MO).

Before founding his own company in 2002, Larrea worked at Merrill Lynch, Prudential, and Morgan Stanley as a financial advisor.

CAT Has Reached a Good Entry Point

After Caterpillar (CAT) dropped and started to make a comeback, it has reached a good entry point for investors, Larrea believes.

CAT has "plenty of growth opportunity" and will not be as badly hit by tariffs as some retailers, Larrea said. The stock can produce "close to" 10% returns over the next 12 to 18 months,, he predicted.

MO's Consistency Is Attractive

MO reached new highs today, and that's due to its stability and its ability to consistently generate profits for investors, Larrea said. These qualities make MO enticing for many investor in the current environment, he stated. Its 6% dividend yield is another attribute that's attracting some hedge funds to it amid the market's current volatility, Larrea explained.

"You will not have a great deal of volatility with MO," making it an attractive short-to-medium term holding for fund managers, the advisor said.

While we acknowledge the potential of CAT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.