These are the 3 Best Blue-Chip stocks to buy in April 2024, as per Wall Street analysts. Blue-chip stocks are associated with very large, well-established companies with proven business models and a strong reputation for delivering consistent performance despite the economic scenario. These companies generally have robust financials and a history of paying shareholder dividends, making them more attractive.
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The U.S. economy is set to bolster this year, with inflation projected to cool down to certain levels and the Federal Reserve expected to cut interest rates. With these two headwinds behind us, investors might look for more opportunities in the stock market. Investing in blue-chip stocks could be a good way to diversify your portfolio with dividend income and share price appreciation. What’s more, analysts have given their support for these 3 blue chip stocks, which makes them worth considering.
#1 Microsoft Corp. (NASDAQ:MSFT)
As of date, Microsoft boasts the largest market capitalization in the world, standing at $2.98 trillion, outpacing all major technology and artificial intelligence (AI) companies. Microsoft is riding massively on the AI wave, being the first tech company to significantly invest in the generative AI space with OpenAI’s ChatGPT. The software giant has integrated generative AI into almost all of its offerings, including Azure cloud infrastructure, the Edge browser, Microsoft Office Suite, and the CoPilot for Microsoft 365.
MSFT also pays a regular quarterly dividend of $0.75 per share, reflecting a yield of 0.69%. In the past year, MSFT stock has gained 42.3%, providing solid returns to shareholders.
Importantly, Microsoft’s Q3 FY24 results are just around the corner, scheduled on April 25. The Street expects MSFT to deliver adjusted earnings per share (EPS) of $2.81 on revenue of $60.83 billion. Microsoft has exceeded analysts’ estimates in seven out of the past eight consecutive quarters.
Expectations on MSFT run high as analysts see huge potential in Azure, Cloud, and gaming segments as the economy sets to revive its course. Yesterday, MSFT announced a partnership with IT services firm Cognizant (NASDAQ:CTSH) to accelerate the adoption of generative AI among enterprises. As per the deal, CTSH purchased 25,000 Microsoft 365 Copilot seats for its associates along with 500 Sales Copilot seats and 500 Services Copilot seats.
Is Microsoft a Buy, Hold, or Sell?
With 32 Buys, one Hold, and one Sell rating, MSFT stock has a Strong Buy consensus rating on TipRanks. The average Microsoft price target of $477.41 implies 19.1% upside potential from current levels.
#2 JPMorgan Chase & Co. (NYSE:JPM)
JPMorgan is a diversified universal bank offering commercial banking, investment management, and asset management services to individuals and businesses. It is the largest bank in the U.S. and gained prominence during the 2023 financial crisis. The bank’s ability to scoop up billions’ worth of assets of the then-defunct First Republic Corp at a substantial discount gave it an advantageous position in the wealth management segment.
Interestingly, JPM failed to meet investors heightened expectations during its Q1 FY24 results. The bank outpaced the consensus on both the top and bottom lines. However, investors were seeking a jump in guidance which JPM did not deliver. Even so, JPM shares have gained 34.6% in the past year. JPM has outpaced the consensus estimates in six of the past eight quarters.
Despite the odds, JPM is poised to outperform in the long run as the macro headwinds normalize. JPM also carries an above-average dividend yield of 2.24%, paying $1.15 per share in quarterly dividends.
What is the Future of JPM Stock?
On TipRanks, JPM stock has a Strong Buy consensus rating, backed by 18 Buys versus five Hold ratings. The average JPMorgan Chase price forecast of $209.70 implies 10.7% upside potential from current levels.
#3 The Cigna Group (NYSE:CI)
The Cigna Group is a global healthcare company offering Medicare, Medicaid, health, life, and accident insurance coverages, and pharmacy services in the U.S. and select international markets. The company has over 200 years of insurance industry experience, making it one of the best blue-chip stocks with exposure to the lucrative U.S. Government medical coverages. The nature of Cigna’s business makes it resilient to macroeconomic factors.
Earlier this year, Cigna raised its quarterly dividend by 14% to $1.40 per share, reflecting an industry average yield of 1.44%. Cigna also announced an accelerated share repurchase plan and will buy back up to $5 billion of shares by the first half of 2024.
It is worth noting that Cigna has exceeded analysts’ expectations in all the past eight quarters. The company is set to release its Q1 FY24 results on May 2, before the market opens. The Street expects Cigna to post adjusted EPS of $6.22 on revenue of $56.60 billion. In the comparative period quarter, CI posted adjusted EPS of $5.41 on revenues of $46.5 billion.
Is Cigna Stock a Good Buy?
With 12 Buys versus three Hold ratings, CI stock has a Strong Buy consensus rating on TipRanks. The average Cigna price target of $389.71 implies 10.3% upside potential from current levels. In the past year, CI shares have gained 37.9%.
Ending Thoughts
The aforementioned three blue chip stocks have won analysts’ favor and could offer solid share price appreciation potential in the next twelve months. Investing in blue-chip stocks is a great way to boost your portfolio with stable, financially sound, dividend-paying, and macro-resilient stocks.
