As the Dow Jones Industrial Average hits record highs, blue-chip stocks are making a robust comeback. Investors should consider bolstering their portfolios with these reliable performers, many of which are still available at appealing valuations. Some of these blue-chip stocks are just beginning to ascend after a bear market in 2022. Here are seven blue-chip stocks to consider for 2024.
General Electric
General Electric (NYSE:GE), once an industrial albatross, had its best year in nearly two decades in 2023, rising 90%. Despite the rally, GE stock is still trading at 14x earnings estimates. This turnaround comes after General Electric split into three publicly traded companies, a move that initially met skepticism but has proven successful in boosting both earnings and stock value.
Nike
Analysts are predicting that Nike (NYSE:NKE) will be a top blue-chip stock for 2024. NKE stock has received upgrades from analysts, including Citigroup (NYSE:C), which upgraded Nike’s stock to a “buy” rating and raised their price target to $135. This comes as Nike’s China business rebounds and its inventories normalize post-pandemic. Nike is also expected to benefit from lower freight costs, growth in its direct-to-consumer business, and improving margins.
Costco Wholesale
Costco Wholesale (NASDAQ:COST) has seen a surge in its share price following a stellar earnings report. The company’s stock has increased 50% year-to-date, with e-commerce sales rising 6.3% from a year ago. Costco is also offering a special one-time dividend of $15 per share to shareholders of record on Jan. 12, 2024.
Microsoft
Despite a 55% increase in its stock in 2023, Microsoft (NASDAQ:MSFT) hasn’t seen the exponential growth that other companies have experienced from their exposure to artificial intelligence. However, analysts believe that Microsoft’s leading role in AI is not fully reflected in its share price and predict a revenue boost from AI in 2024.
McDonald’s
McDonald’s (NYSE:MCD), nearing its 70th anniversary, is in growth mode with plans to open 10,000 new restaurant locations and add 100 million members to its loyalty rewards program. The company is also testing a spin-off brand called “CosMc’s” aimed at teenagers and young adults.
Ulta Beauty
Ulta Beauty (NASDAQ:ULTA) is another blue-chip stock making a comeback. Despite a 33% plunge earlier in 2023 due to fears of slowing sales, Ulta Beauty’s strong Q3 financial results and raised forward guidance have reignited interest in the company’s shares.
Mastercard
Mastercard (NYSE:MA) is performing well as worldwide travel recovers to pre-pandemic levels. The company recently increased its quarterly dividend payment by 16% and announced a new $11 billion stock buyback program. Mastercard’s strong financial results, which have steadily improved since the end of the Covid-19 pandemic, suggest continued strength in 2024.
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