Blue-Chip Resilience: 3 Stocks Defying Market Trends
Wagering on the top blue-chip stocks to buy remains a pivotal strategy for investors in today’s ever-evolving stock market landscape. While the stock market is a fertile ground for long-term wealth creation, it’s also characterized by shades of volatility. In such times, investors gravitate towards blue-chip stocks, which offer stability amidst economic fluctuations.
These are blue-chip stocks. these stocks are synonymous with reliable dividends, robust financial health, and long-term growth opportunities. Moreover, these three blue-chip stocks we’ll discuss are poised for significant impact, reshaping investor sentiments.
Although their rapid growth phase may be behind them, their potential for steady, continued expansion makes these blue-chip stocks a smart choice for investors looking to balance risk with reward.
Meta (META)
After a tumultuous 2022, Meta (NASDAQ:META) has made an emphatic comeback in 2023, effectively climbing out of its stock slump. Consequently, META stock has soared by an eye-catching 169% year-to-date, pushing its market cap to an impressive $835 billion. A 15% uptick from current levels could propel its valuation to the elusive trillion-dollar club. And given the investor enthusiasm surrounding the stock, it seems inevitable.
Despite its Reality Labs segment facing losses, META’s resurgence is fueled by its flagship Family of App offerings. Advertising revenue, the company’s bread and butter, continues to move from strength to strength. Currently, this points to a promising horizon for investors as macroeconomic conditions brighten.
Meta has delivered strong quarterly performances. Notably, its latest financial report showcased a robust 23% surge in revenue to $34.1 billion. This performance paints a picture of a company recovering and thriving, navigating through challenges with considerable aplomb. This combination earns Meta a spot on my list of top blue-chip stocks.
PayPal (PYPL)
PayPal (NASDAQ:PYPL) is a giant in the online payment arena, and among a few top tech stocks that have traded in the red this year.
Nevertheless, from a financial standpoint, the company remains robust. Its third-quarter performance highlighted its enduring strength and growth potential with an adjusted EPS of $1.30, surpassing expectations and rising from $1.16 in the second quarter. At the same time, revenue shot up to $7.42 billion, exceeding both prior quarter and year-over-year figures. Notably, transactions per account were up 13% on a trailing 12-month basis, while Total Payment Volume (TPV) for the third quarter rose to a staggering $387.7 billion.
Dominating over 40% of the global online payment processing market, the company is not resting on its laurels. Recently, it onboarded new executives and managers to align its efforts to serve its customers better. This strategic realignment and focus on operational optimization to keep pace with online shopping trends underscore the company’s proactive approach to maintaining its leadership position in its niche. With resiliency and forward-thought at the wheel, PayPal makes my list of blue chip stocks to buy.
Mastercard (MA)
Mastercard (NYSE:MA) shares a near-duopoly with Visa in the credit card market. It stands as a resilient player due to its intrinsic link to consumer spending.
Financially, Mastercard consistently showcases powerful top-line performance with profit margins regularly exceeding 40%. In the third quarter of 2023, the company reported a 14% year-over-year increase in sales, reaching $6.5 billion. Additionally, cross-border volume increased by a sizable 21% on a local currency basis. Net income for the quarter stood at a hefty $3.2 billion, or $3.39 per share.
Strategically, the firm returned significant value to its shareholders by repurchasing 19.2 million shares. At the same time, the company paid out $1.6 billion in dividends in the quarter ending in Sept. 2023.
Furthermore, MasterCard’s forward yield stands at just 0.55%. Though it may seem relatively modest, the company has been consistently increasing its dividend payouts for twelve consecutive years, underscoring its commitment to shareholder value and growth in returns. In my opinion, this is a clear winner of a blue-chip stock.
On the date of publication, Muslim Farooque 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
