7 Blue-Chip Stocks to Buy Now: June 2024 (2024)

Blue-chip stocks to buy offer stability now and steady financial growth for the future. These corporations are household namesthat arelikely to rise in the long run. While stocks carry more risk than leaving your money in the bank account, these same investments are alsolikelyto keep up with inflation and generate more returns than the interest you would have made from the bank.

Investors can opt for an index like theS&P 500or theNasdaq Composite, but it is possible to outperform bothof these benchmarks. Investors can look within indices and ETFs to discover how to outperform them. Some stocks in any fund or index perform better than others, and focusing on the winners can lead to outsized gains.

The blue-chip stocks to buy now on this list are all profitable andare reportingrising financials.They have competitive moats within their industries andlook poised to gain moremarket share.

Alphabet (GOOG, GOOGL)

Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL) is areasonablyvalued Magnificent Seven stock that is exhibiting solid growth rates. The $2.2 trillion company trades at a 27.5 P/E ratio andcomes witha 0.45% yield.Shares are up by 27% year-to-date (YTD) and have more than tripled over the past five years.

The tech firm achieved 15% year-over-year (YOY) revenue growth in thefirst quarter of 2024. Net income surged by 57% YOY amid the company’s cost-cutting initiatives. Alphabet’s profit margins stand to expand considerably as the firm further trims its costs and places a stronger focus on the bottom line.

Alphabet recently initiated its first quarterly dividend which currently stands at 20 cents per share. Wall Street is bullish on the stock and analysts have rated itasa“Strong Buy.” The average price target suggests a 13% upside. People will continue to use Google and YouTube to consume information, and Google Cloud is penetrating the cloud computing industry. Alphabet looks like one of the most promising blue-chip stocks to buy now.

Nvidia (NVDA)

Nvidia(NASDAQ:NVDA) recently became the world’s most valuable publicly traded corporation. The AI boom is stillgoingstrong, and many big tech companies are rushing to buy Nvidia’s chips. The stockis currently ratedas a“Strong Buy” among 41 analysts. It’s easy to see why analysts are optimistic about the stock. Shares are up by 171% YTD and have gained more than 3,350% over the past five years.

The corporation continues to boast incredible revenue and earnings growth as AI tailwindscontinue topropel the stock.Revenue increased by 262%YOYinQ1 2025while net income was up by 628%.

Nvidia has generated plenty of additional attention since leadership announced a 10-for-1 stock split. The stock split doesn’t impact Nvidia’s value, but it makes options trading more accessible which should increase volatility. The overall sentiment is bullishat the moment, so increased options trading can result in higher prices.Nvidia has a pristine balance sheet and net profit margins that regularly exceed 50%due to AI tailwinds.

Meta Platforms (META)

Meta Platforms(NASDAQ:META) is another online advertising giant thatknows how tograb people’s attention and convert it into cash. Shares are up by 44% YTD and have soared by over 160% over the past five years as Mark Zuckerberg continues to roll witha year of efficiency.

The company more than doubled its net incomeYOYinQ1 2024and recently initiated a dividend program. Meta Platforms reduced its headcount by 10%YOYto 69,329 employees. The firm also reported 27%YOYrevenue growth.

Meta Platforms has 3.24 billion daily active users across its social networks. That’s a 7% YOY improvement. A steady stream of new users allows Meta Platforms to display more ads and generate additional revenue. The company is also working on some AI initiatives that can become viable business segmentsin the future. Meta Platforms has a healthy cash position of $58.12 billion and used $14.64 billion to repurchase shares this quarter. Meta Platforms also gave out $1.27 billion to investors as dividends.

American Express (AXP)

American Express(NYSE:AXP) among the undervalued blue-chip stocks to buy now that looks like a bargain compared to other credit and debit card issuers. The stock trades at a 19 P/E ratio and offers a 1.22% yield. American Express regularly raises its dividend by 10% or more each year andhikedits dividendby 17% earlier this year. Shares have gained 22% YTD and are up by 84% over the past five years.

The fintech firm reported strong earnings in theQ1 2024, which indicates that the company’s multi-year growth plans are working. Revenue increased by 11% YOY while net income was up by 34%. Those growth rates translated into a net profit margin of 16.9%.

One of thepositive tidbits from therecent results was that more than 60% of new accounts came from Millennials and Gen Z consumers.Blue-chip stocks to buy must now win over new generations to stay relevant and reward long-term investors too. American Express’ ability to do just that suggests a bright future.

Costco (COST)

Costco(NASDAQ:COST) generates annual recurring revenue from its membership program and plenty of sales from its wholesale locations. The company offers affordable products that will always generate demand in good and bad economic cycles. Costco’sMay sales resultsdemonstrate that peopleare spendingmore money with the wholesaler. Total revenue increased by 6.4% YOY while e-commerce saleswere upby 15.3%. Growth rates were similar if investors excluded the impacts of changes in gasoline prices and foreign exchange rates.

Costco is a top pickin Wall Street that iscurrently rated as a“Strong Buy.”The stock has received a few upgrades lately, including a high of $960. This price target suggests that Costco can gain an additional 10% from current levels. Costco hascertainlydelivered plenty of upside for its investors. The stock has gained 34% YTD and has soared by 227% over the past five years.

Chipotle (CMG)

Chipotle(NYSE:CMG) closed out 2023 witham ambitious goal, open285-315 restaurants in 2024. The Mexican Grill chain started the year by opening 47 new restaurants inQ1 2024. Chipotle announced that it remains on pace to hit its full-year restaurant goals. Most of Chipotle’s new locations are coming with mobile order pick-up windows, called Chipotlanes, which have helped the company manage more orders and generate additional sales.

That’s not the only good news cooking for Chipotle stock. Revenue increased by 14.1% YOY to reach $2.7 billion as higher prices didn’t stop people from visiting their local Chipotle. Net income jumped by 23.2% YOY, resulting in a 13.3% net profit margin.

Investorsare gatheringaround to buy Chipotle before the stock goes through a 50-for-1 split. The stock has gained 43% YTD and is upby342% over the past five years. Shares currently trade at a 73 P/E ratio. Chipotleis currently rated as a“Moderate Buy”among 27 analysts. None of them gave Chipotle a “Sell” rating.

Waste Management (WM)

Waste Management(NYSE:WM) provides an essential servicefor commercial, industrial and residential clients.The company picks up wasteand gets it out oflocal communities, corporate buildings and other locations.Wall Street analysts are bullish on the stock and have given it a consensus“Moderate Buy” rating. Shares have a projected 7% upside based on the average price target. That projected gain is in addition to Waste Management’s 16% year-to-date gain. Shares have also been up by 79% over the past five years and have a 34 P/E ratio.

The company reported solid earnings that suggest the rally is here to stay. Revenue increased by 5.5% YOY inQ1 2024while net income was up by 32.8%. Waste Management recorded a 13.7% net profit margin to wrap up the quarter. Investors receive steady cash flow for holding onto their shares. Waste Management has a 1.44% yield and a compounded annualized dividend growth rate of8.36% over the past five years.

On thisdate of publication, Marc Guberti held long positions in GOOG and NVDA. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.