Today, we’ll explore three stable blue-chip stocks to buy. As the earnings season approaches, Wall Street is getting readyfor potential market volatility. With the S&P 500 and Nasdaq 100 already up 18% and 21% this year, respectively, it’s clear that market fortunes can shift rapidly. In uncertain times like these, blue-chip stocks provide a reliable anchor, offering stability and resilience when the market is turbulent.
Known for their consistent performance and reliable dividends, stable blue-chip stocks can be the bedrock of a solid investment plan. Seasoned investors agree that one of the key benefits of investing in blue-chip stocks is their reliable dividend payments. Academic research highlights that reliable dividends can help counteract any short-term drops in a stock’s value and contribute to the overall return on investment.
Let’s now take a closer look at the three top-notch blue-chip stocks to buy before earnings season kicks off.
Apple (AAPL)
Apple (NASDAQ:AAPL) remains a perennial favorite among stable blue-chip stocks. The consumer tech’s continuous innovation is a cornerstone of its long-term investment appeal. apple has a wide economic moat, with competitive advantages that protect it from competitors and help maintain its leading market position.
In early May, Apple reported second quarter 2024 earnings. Despite a slight revenue dip of 4% year-over-year (YOY) to $90.8 billion, diluted EPS held steady at $1.53. The company reaffirmed its intention to crete shareholder value with a $110 billion share repurchase authorization and an annual dividend increase.
Apple’s services segment posted an impressive 14% YOY revenue growth, highlighting the importance of strategic diversification. Upcoming enhancements in Apple Music and Apple Fitness+, along with potential subscription bundles, aim to boost customer engagement and recurring revenue. Its new artificial intelligence (AI) platform, Apple Intelligence, also promises a significant future impact.
Year-to-date (YTD), AAPL stock has surged over 22%, while the shares are trading at 33.9 times forward earnings and 9.4 times sales. Analysts warn of overvaluation, setting a 12-month median price target of $220.00, suggesting a 6% potential downside. However, positive market sentiment and promising growth prospects indicate that AAPL stock could still offer long-term returns, especially with upcoming developments.
Apple’s third quarter 2024 earnings release is scheduled for August 1. Unitl then, any potential decline in Apple stock price could be a good long-term opportunity to add this consumer tech giant to your portfolio.
Chevron (CVX)
Next in today’s lineup of stable blue-chip stocks is the integrated energy company Chevron (NYSE:CVX). In terms ofenergy exploration, key areas of focus for Chevron include the Permian Basin in the U.S., offshore projects in the Gulf of Mexico, and international projects in countries like Kazakhstan and Angola. Chevron is also a significant player in the liquefied natural gas (LNG) market, with major projects in Australia and Angola. Through its subsidiary, Chevron also manufactures petrochemicals and plastics, which are used in various industries.
The energy group reported its first quarter 2024 earnings on April 26. Global production saw an impressive 12% YOY increase. However, Chevron’s earnings declined due to lower profitability in refined product sales and natural gas prices. Adjusted earnings totaled $5.4 billion, or $2.93 per share, down from $3.55 per share a year ago. Notably, the company raised its dividend by 8% from the previous quarter and repurchased nearly $3 billion in shares.
Looking ahead, Chevron is poised to benefit from rising global energy demand, with forecasts suggesting ongoing growth in oil and gas production. Additionally, Chevron’s collaboration with Bunge (NYSE:BG) on a new oilseed processingplant in Louisiana aligns with sustainable energy trends, bolstering capacity for renewable fuel feedstocks by 2026.
Since January, CVX stock has gained 6% YTD, complemented by a robust 4.1% dividend yield. Shares trade at reasonable valuations of 12 times forward earnings and 1.5 times sales. Wall Street analysts have set a 12-month median price target of $180.00, suggesting a potential 14% upside. Chevron’s next earnings release is scheduled for August 2, 2024.
Sanofi (SNY)
Today’s final name among blue-chip stocks to buy is Sanofi (NASDAQ:SNY), a leading French healthcare heavyweight. With a robust product lineup including vaccines and prescription drugs, Sanofi plays a pivotal role in global healthcare. It also offers a solid choice for diversified portfolios due to its stable earnings and dividend increases for almost three decades.
On April 25, Sanofi reported Q1 2024 financials. Revenues grew 2.4% YOY to 10.5 billion euros. Sales rose 7% YOY, driven by strong performances from Dupixent and new launches like Nexviazyme and Altuve. However, business EPS decreased 17.6% YOY to 1.78 euros, mainly due to higher tax rates.
Sanofi enhances its portfolio through strategic collaborations and acquisitions. It recently acquired Inhibrx to strengthen its rare disease segment. The acquisition is expected to contibute significantly to revenues. Sanofi is also progressing with its drug pipeline, with 12 phase three data readouts anticipated over 2024-2025.
Since January, SNY stock is up around 1%, with a dividend yield exceeding 4%. The shares are trading at 15.8 times forward earnings and 2.5 times sales. Analysts’ 12-month median price forecast stands at $58.78, implying an upside potential of nearly 18% from the current levels. Sanofi is expected to release its second quarter 2024 results on July 25, 2024.
On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held a long position in AAPL.