The stocks that are of high quality, the companies which are established, big, renowned, and are in the market for decades are called blue chip stocks.
Blue chip is an analogy that is used for identifying the “most valued stock”.
Blue chip companies have the largest market share
Every company operates in a specific sector or industry and there can be many companies operating in similar sector/industry.
There are companies that operate in several sectors but each company has a core operating sector.
The reason being they yield consistent dividends, their future growth is more certain and during difficult times their stock price is more or less stable.