The 3 Blue-Chip Stocks That Could Make Your February Unforgettable
If you’re on the market for blue chip stocks to buy, look no further. Investors can find a good blend of stability and growth by searching for blue-chip stock ideas. These equities can keep up with the market and outperform it in some cases.
Blue-chip stocks also bode well for long-term investors. They are often household names that continue to gain market share each year. Many of these companies make acquisitions and invest in new assets to increase shareholder value.
Investors can choose from many blue-chip stocks. However, you may want to add these three investment opportunities to your watchlist.
Blue-Chip Stocks to Buy: Moody’s (MCO)
Moody’s (NYSE:MCO) offers high-profit margins and enticing financial growth. Investors have noticed and bid the stock to a 146% gain over the past five years.
Moody’s offers risk management and financial services for its clients. The company’s analytics allow leaders to make data-backed decisions and navigate uncertainties within the market. The firm closed out the third quarter of 2023 with 15% year-over-year ( ) revenue growth. Net income increased by 28% YOY during the quarter.
The corporation’s recent quarter represents revenue acceleration. In the first nine months of the year, Moody’s revenue growth only comes to 6%. Moody’s President and CEO Rob Fauber credited the insurance segment’s recovery and the team’s resilience for the successful quarter.
Moody’s is working on a generative AI assistant that will help clients. Customers can use the AI assistant to dive into Moody’s credit research, data, and analytics. More efficiency can increase retention rates and give Moody’s the flexibility to raise its prices.
Visa (NYSE:V) is a reliable fintech company that generates revenue from each Visa credit and debit card transaction. The company has pristine profit margins and continues to grow its top and bottom lines.
Visa reported 9% YOY revenue growth and 17% YOY net income growth in the first quarter of fiscal 2024. The firm trades at a 28-forward P/E ratio and has put its capital to use via share buybacks, dividend payouts, and acquisitions.
Visa closed out the quarter with $3.4 billion in stock buybacks and still has $26.4 billion in remaining authorized funds to repurchase additional shares. Visa’s dividend yield is low at 0.75% but the company’s annual dividend growth rate is enticing.
Near the end of 2023, Visa hiked its quarterly dividend per share from 45 cents to 52 cents. That represents a 15.6% YOY increase. Investors can benefit from a healthy blend of cash flow and stock appreciation.
Chipotle (NYSE:CMG) offers enticing margins and growth for long-term investors. The company has been gaining market share for many years and looks poised to continue that trend.
The fast food restaurant reported 15.4% YOY revenue growth in the fourth quarter of 2023 amid 121 new restaurant openings. Almost all of those restaurants have a Chipotlane, the company’s mobile pickup order window.
Most of its restaurants are located in the United States, but Chipotle is tapping into international markets for new growth opportunities. The company will soon have more locations in the Middle East and is looking to build on its presence in Canada, the United Kingdom, France, and Germany.
Chipotle has fewer than 50 restaurants in Europe and fewer than 50 restaurants in Canada. The restaurant chain has a lot of room for international expansion and is just getting started on this front.
These efforts can continue an impressive stock rally that has made many long-term investors happy. Shares are up by 44% over the past year and have a 5-year gain of 327%.
On the date of publication, Marc Guberti 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.