Not every investor wants to roll the dice and take on risky stocks. While some of those stocks can deliver life-changing gains, these types of stocks can also end up accruing significant losses. Blue-chip stocks are a less risky alternative that embraces the mantra of “slow and steady wins the race.” Most of these stocks do not outperform the market but fall a lot less during economic uncertainty.
Retirees and people with lower risk tolerances often gravitate toward these stocks. However, some blue-chip stocks are better than others. If you want to load up on these assets, you may want to watch these top blue-chip stocks.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has many business segments, but most investors prioritize the e-commerce and cloud computing components. These segments drive considerable growth and profits for the company, but investors may want to set their sights on two emerging opportunities.
Advertising and artificial intelligence (AI) can propel the stock in the years ahead. Amazon’s advertising business has been one of the fastest-growing segments of the tech giant for several quarters. However, Amazon can experience even more growth through its foray into artificial intelligence.
Amazon recently launched Q, which is an AI chatbot for businesses. This monthly subscription software is also helping Amazon gain more market share for productivity software.
The company is directly challenging Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG,GOOGL) and Meta Platforms (NASDAQ:META) with its latest projects. Taking market share from any of those three companies can result in hefty gains for long-term investors.
Amazon shares had a rough 2022 and unimpressive 5-year gains at that point. However, the stock has returned to life with a 70% year-to-date gain.
Visa (V)
Visa (NYSE:V) is the top issuer of credit and debit cards. The fintech company has healthy profit margins ranging from 45% to 50% of revenue. As long as consumers use credit and debit cards frequently, Visa will continue to reward long-term investors.
Shares have gained 23% year-to-date and are up 87% over the past five years. The company prioritizes shareholder value and reinvested $16.1 billion into share buybacks in fiscal 2024.
The stock has a low dividend yield, but Visa has steadily raised it over the years. Visa recently raised its quarterly dividend per share from $0.45 to $0.52 per share. It marks a 15.6% year-over-year increase.
Visa closed the fiscal year with stable payment volume and processed transaction growth. The rising cost of living has not made a dent in Visa’s financials. People will continue to use credit and debit cards in any economy, which will help Visa stock reach new heights.
Salesforce (CRM)
Salesforce (NASDAQ:CRM) is a cloud-based customer relationship management company that offers advanced software for business owners. Like Amazon, CRM stock erased considerable gains in 2022 and became unprofitable for people who held onto it for a few years.
However, the tide is turning, and Salesforce stock has almost doubled year-to-date. The quick turnaround comes on the heels of the company’s new approach to profitability. Salesforce reduced its staff, which expanded profits and freed up resources to hire workers for its artificial intelligence projects.
Those moves helped the company increase its net income by 1,763% year-over-year. The company’s net profit margin typically resides in the low single digits but almost reached 15% in the latest quarter.
The stock suddenly looks exciting and is roughly 15% removed from its all-time high. The forward P/E is a relatively reasonable 27. Year-over-year revenue growth has been steady in the low double-digits.
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.
