Wall Street Favorites: 3 Blue-Chip Stocks With Strong Buy Ratings for March 2024


  • Here are three blue-chip stocks that analysts are loving right now. 
  • Taiwan Semiconductor (TSM): The company was awarded more than $5 billion in grants to build a U.S. chip plant in Arizona.
  • PepsiCo (PEP): Bottom line growth is expected to improve in the 2024 fiscal year. 
  • Oracle (ORCL): AI is driving the increased demand for their Gen2 cloud infrastructure.
strong buy blue-chip stocks - Wall Street Favorites: 3 Blue-Chip Stocks With Strong Buy Ratings for March 2024

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In today’s ever evolving global economy, investors continue to search for strong buy blue-chip stocks. These well established companies exhibit a history of weathering economic storms while delivering consistent, stable returns. 

These industry leaders have improved business fundamentals and tailwinds for accelerated growth. One of the primary drivers are the booming AI software and hardware markets. For investors seeking a balance between growth and stability, blue-chip stocks with strong buy ratings can be an attractive option. 

Now, let’s unpack the top three strong buy blue-chip stocks for March 2024!

Taiwan Semiconductor (TSM)

image of TSM semiconductor office building
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Taiwan Semiconductor (NYSE:TSM) stock is up more than 40% YTD, and industry tailwinds in artificial intelligence could support further upside in 2024. They are a powerhouse in the semiconductor industry, and the world’s largest independent semiconductor foundry controlling more than 50% market share. 

Taiwan Semiconductor (TSMC) is unique in that they do not design their own chips, but rather manufacture them based on the specifications of other companies. TSMC’s expertise in this area has made them a critical partner for major tech companies, including Apple, Qualcomm, and Nvidia. The company has invested billions in pushing the boundaries of chip manufacturing technology, and are set to benefit from the United States Chips and Science Act. Wall Street analysts have turned bullish, after the company was awarded more than $5 billion in grants for a U.S. chip plant in Arizona

In order to meet the growing demands of AI workloads, TSMC will continue to see increased demand for its foundry services. The push into U.S. manufacturing could be a massive catalyst for growth. Additionally, the company continues to diversify away from China after opening their first chip fabrication plant in Japan last month. TSMC’s long term growth prospects are improving, and are likely to be reflected in their financial results in FY24.

PepsiCo (PEP)

Cans of PepsiCo's Pepsi soda are in a bucket of ice.
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PepsiCo (NASDAQ:PEP) is one of the top strong buy blue-chip stocks for March. The company is synonymous in the global food and beverage industry, and management forecasts strong growth in the 2024 fiscal year. 

PepsiCo has an incredible track record of returning cash to shareholders and boasts a rich history dating back to 1965. Not only are they considered a notable ‘blue-chip stock’, but also a dividend aristocrat given then 52 years of consecutive dividend increases. The company has a major footing in North America, but continues to see positive signs of growth in Latin America. 

In their Q4 and full year 2023 results, revenue increased 6% YOY to $91.5 billion. They were able to navigate a tougher macroeconomic environment, and deliver robust dividend and FCF growth. They recently increased their quarterly dividend by 10% to $1.265 per share and FCF swelled 39% YOY to $8.12 billion. Management forecasts 4% organic revenue and 8% EPS growth, making PEP one of the top blue-chip stocks to buy now.

Oracle (ORCL)

The Oracle (ORCL) sign hangs on an Oracle office in Deerfield, Illinois.
Source: Jonathan Weiss / Shutterstock.com

Oracle (NYSE:ORCL) is an industry titan in the cloud infrastructure business, and artificial intelligence has expanded the company’s long term growth prospects. CEO Safra Katz expects to continue receiving large contracts for their Gen2 AI infrastructure in FY24. 

Nearly every enterprise cloud provider is working around the clock to address the growing demands of AI network infrastructure. AI workloads will drive productivity for businesses, but present a full-stack challenge as they’re not even cloud data centers to meet this demand. Moreover, Oracle has strategically positioned themselves to capitalize on this problem, and their cloud infrastructure platform continues to see strong double digit growth.

Management reported in their Q3 FY24 results that total remaining performance obligations were up 29% YOY to $80 billion. Cloud revenue increased 25% YOY to $5.1 billion, and they believe that their cloud infrastructure business is in a hyper-growth phase. Furthermore, Oracle is wasting no time as they’re rapidly building out new data centers in 2024 to meet the growing demand. As their cloud business continues to build on momentum and maintain sequential growth, ORCL stock remains a strong buy in 2024.

On the date of publication, Terel Miles 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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/wall-street-favorites-3-blue-chip-stocks-with-strong-buy-ratings-for-march-2024/.

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