Financial opportunities are as abundant as they are volatile. Seizing a selected group of blue-chip stocks to buy could lead to unparalleled investor growth. The article lists seven titans of their specific industries. From the booming realm of clean energy to the ever-evolving landscape of pharmaceuticals and the digital realms of streaming and tech innovation, these companies are navigating emerging fields with audacious strategies.
The article explores the fundamentals of seven captivating blue-chip stocks, diving into the intricacies of harnessing the renewable energy wave and redefining pharmaceutical growth post-Humira. It also merges healthcare services with technology, weaves an empire of content in the age of streaming, reimagines sportswear in a digital era, and sculpts the future of high-performance computing. Each company carries its own narrative of resilience and prospects. With that, here are some of the top blue-chip stocks to buy now.
Blue-Chip Stocks to Buy: Enphase Energy (ENPH)
Enphase Energy (NASDAQ:ENPH) is benefiting from the Investment Tax Credit (ITC) and the growing clean energy demand in the US. The company shipped 50,000 microinverters in Q2, with plans to ship 600,000 more in Q3. While the US solar market is facing headwinds, Enphase’s differentiated technology is contributing to its stable and high market share for microinverters.
Enphase is also seeing record growth in Europe and Australia. The introduction of IQ8 microinverters and batteries into multiple European countries, along with the company’s comprehensive NEM 3.0 solution, is driving growth. In addition, Enphase’s third-generation IQ Battery 5P, with increased power output and modularity, has been well-received, particularly in California, where NEM 3.0 drives battery attach rates. Finally, Enphase’s expansion into the small commercial solar market, EV chargers, and installer platform enhancements further strengthen its position.
AbbVie (NYSE:ABBV) has solid strategic execution and diverse growth opportunities across therapeutic areas. Despite competition from biosimilars, the US Humira biosimilar impact has aligned with projections and exceeded expectations. The company’s strong performance on its growth platform, excluding Humira, has driven growth, with an operational revenue increase of nearly 8% in the current quarter.
AbbVie’s focus on its pipeline is yielding positive results. It includes solid data for Skyrizi in ulcerative colitis, US approvals for Rinvoq in Crohn’s disease, and Epkinly in DLBCL. It demonstrates AbbVie’s commitment to delivering new therapies to patients.
Fundamentally, the company’s core therapeutic areas, including immunology, oncology, and neuroscience, are showing impressive growth. Therapies like Skyrizi and Rinvoq are achieving significant revenue growth. As a result of these factors, AbbVie is confident in its ability to achieve robust growth by 2025 with a high single-digit compounded growth rate. It is solidifying AbbVie’s position as a leading pharmaceutical company in the long term.
Blue-Chip Stocks to Buy: CVS Health (CVS)
CVS Health’s (NYSE:CVS) acquisition of Signify Health and Oak Street Health enhances its value-based care assets. Notably, it synergizes with Aetna, MinuteClinic, and CVS Pharmacy. This connectivity drives patient engagement and growth, expanding their market presence.
Also, the company’s diversified business model, spanning healthcare benefits, health services, pharmacy, and consumer wellness segments, mitigates risks and capitalizes on various revenue streams. The resilience of the front-store offerings, growth in digital sales, and strong pharmacy performance contribute to its overall strength.
Further expansion into 12 states with over one million new members strengthens their exchange offering. It lays the foundation for future earnings growth at Aetna and integrates members across all integrated assets. CVS Health’s ability to generate substantial cash flows allows them to invest in their long-term strategy while returning value to shareholders.
Lastly, CVS Health’s optimization efforts, including a restructuring charge and AI implementation, exhibit its commitment to efficiency and operational excellence. These actions generate cost savings and enable the reallocation of resources to core growth areas like health services and technology.
Paramount (NASDAQ:PARA) has a coherent strategy, strong execution, and adaptability in the face of industry changes. Paramount’s direct-to-consumer (D2C) business shows impressive growth with increased revenue, engagement, and improved earnings in its streaming division. The company boasts a vast library spanning over 100 years, including 200,000 TV episodes and 4,000 movies. It is driving viewership on platforms like Paramount+ and Pluto TV.
Paramount’s production capabilities are global, extending from Hollywood to key markets and producing hit franchises like Transformers, Mission Impossible, and Taylor Sheridan originals. With more than a dozen billion-dollar franchises and numerous popular originals, Paramount has a robust content engine.
The company leverages multiple platforms and revenue streams, including subscription, advertising, and content licensing, ensuring flexibility as the market evolves. Thus, Paramount’s strong position in the ad market, primarily digital, contributes to its revenue growth. Integrating Paramount+ and Showtime leads to consolidation-driven cost savings, increased consumer engagement, and improved product strength. Finally, the company focuses on revenue growth, cost efficiency, and sustainable business models to grow its value.
Blue-Chip Stocks to Buy: Nike (NKE)
Nike (NYSE:NKE) had exceptional performance in 2023, with a remarkable 16% revenue growth. Notably, North America, EMEA, and APLA witnessed double-digit growth, and Greater China returned to double-digit growth in Q4.
Nike’s robust brand portfolio, including Nike, Jordan, and Converse, experienced substantial growth, with Jordan reaching record highs, positioning it as a formidable footwear brand in North America. The company’s focus on digital transformation led to a significant increase in digital sales, contributing 26% of total business, up from 10% in 2019. The membership offense strategy deepened consumer relationships, increasing engagement, loyalty, and purchase frequency.
Fundamentally, the company’s expansion across various segments, including football, basketball, and running, highlights its ability to dominate key markets. Innovative products like the Vaporfly 3, Peg Trail 4, and Infinity Run 4 solidify Nike’s innovation leadership in running. Furthermore, their strong presence in basketball is exemplified by endorsements from top athletes and partnerships with popular culture.
Nike’s emphasis on providing an integrated consumer experience, leveraging both digital and physical channels, positions it to capitalize on emerging trends and maintain its competitive edge. Therefore, the elevation of leadership and streamlined operations will further drive innovation and growth.
Intel’s (NASDAQ:INTC) focus on AI is paying off as they capitalize on the AI market, positioning themselves to lead the industry by 2030. Intel Foundry Services taps into the growing AI market and ensures a diversified global supply chain. IFS strengthens Intel’s IDM 2.0 strategy by creating accelerants for its roadmap and enabling cutting-edge manufacturing processes.
Further, Intel is committed to delivering advanced products across various nodes, such as Intel 3, Intel 4 (with EUV technology), and Intel 18A. These products leverage advancements like PowerVia technology and backside power delivery, enhancing power efficiency and performance for AI, CPUs, and graphics. Intel’s PC market strategy anticipates an AI PC inflection point, capitalizing on hybrid work, productivity, sensing, security, and creator capabilities. Upcoming products like Meteor Lake, built on Intel 4 and featuring Intel AI Boost, showcase their commitment to AI integration in PCs.
Intel’s diverse portfolio, including PSG, NEX, and Mobileye, is also positioned for growth. Their commitment to cost savings and efficiency enhances their competitiveness. The development of Tunnel Falls, a 12-cubit silicon-based quantum chip, demonstrates Intel’s pioneering approach to quantum computing. Finally, their focus on a silicon-based qubit approach could offer significant advantages for cost-effective commercialization.
Taiwan Semiconductor (TSM)
Despite short-term challenges, Taiwan Semiconductor, or TSMC (NYSE:TSM), is strongly committed to technological leadership and customer support.
The focus on developing cutting-edge nodes like 3-nanometer technology underscores its dedication to delivering higher performance and energy efficiency, which aligns with industry trends such as 5G, AI, and HPC. This technological leadership allows TSM to capture demand for high-end semiconductor solutions. The HPC and AI megatrends fuel TSM’s growth. Its technological prowess aligns with the increasing demand for high-performance computing and AI-related applications.
Looking forward, the 2-nanometer (N2) technology, set for production in 2025, ensures a steady stream of technological advancements. The progress towards N2 technology and backside power rail solutions exemplifies the company’s forward-looking approach. As a result, TSM is maintaining its position at the forefront of semiconductor innovation.
Finally, the company’s strategic expansion of manufacturing facilities across different geographies, including the US, Japan, and potentially Europe, enhances its flexibility, customer responsiveness, and resilience against supply chain disruptions. These facilities cater to specific regional demands, tap into government support, and foster long-term partnerships.