The 3 Best Blue-Chip Stocks to Buy in June 2024


  • These are blue-chip stocks that investors have been very interested in lately.
  • Caterpillar (CAT): CAT operates a robust business model with potential upside regarding its revenue.
  • Nvidia (NVDA): NVDA reported another outstanding earnings result.
  • American Express (AXP): AXP has been experiencing a shift within its prime customer base.
Best blue-chip stocks - The 3 Best Blue-Chip Stocks to Buy in June 2024

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Blue-chip companies are industry-leading stocks that are very established and have a strong reputation. They offer investors peace of mind, knowing that their portfolio is backed by stocks highly likely to provide consistent returns and long-term growth.

The Dow is a solid gauge of the state of blue-chip companies as a whole. It comprises 30 companies and has returned about 15% in the past year.

Below, I have chosen a number of the best blue-chip stocks that investors should consider adding to their portfolios. They have performed remarkably well recently, especially regarding share price appreciation, and still offer upside potential.

Caterpillar (CAT)

An image of the Caterpillar tractor brand logo.

Caterpillar (NYSE:CAT) is a construction and heavy equipment manufacturer whose products include tractors, hard rock vehicles, forestry machines, skid steer loaders, excavators and articulated trucks.

Over this past year, its share price has increased 46%. It has been one of the leading stocks within the Dow and greatly contributed to growing the overall returns for the index.

On April 25, CAT released its earnings for the first quarter of 2024, stating that total revenue remained practically unchanged from the year before. Earnings per share increased from $3.74 for Q1 2023 to $5.75 per share, a 54% increase.

Caterpillar also reported enterprise operating cash flow of $2.1 billion and stock buybacks totaling $4.5 billion during the first quarter.

It offers investors a dividend yield of 1.57%, which has increased for thirty consecutive years. The most recent quarterly dividend, distributed on May 20, was one dollar and thirty cents per share.

CAT still has a strong future, especially regarding revenue growth, which lagged for its Q1 report due to lower sales volume. However, its energy and transportation business, particularly the need for reciprocating engines, has recently provided CAT with increased revenue.

It is a solid long-term stock for investors that may continue to experience considerable upside.

Nvidia (NVDA)

Nvidia (NVDA) logo and sign on headquarters. Blurred foreground with green trees
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Nvidia (NASDAQ:NVDA) is a leading semiconductor manufacturer that produces graphics cards for PCs, cloud-based software and innovative AI technology used for professional visualization, data centers and automated manufacturers.

The company recently released another earnings report that exceeded analyst projections and sent the stock trading above one thousand dollars per share. On May 22, it reported earnings for the first quarter of 2024, stating total revenue had tripled year-over-year. Net income rose from $2 billion for Q1 2023 to nearly $15 million for Q1 2024. It reported record data center revenue that increased by 427% year-over-year. The total revenue expected for Q2 2024 is approximately $28 billion.

Nvidia also announced initiating a 10-for-1 stock split on June 7.

Over the last year, Nvidia’s share price has nearly tripled and recently passed the one thousand dollars per share threshold, which may have led to the board of directors approving a stock split.

Nvidia is a technology company that has performed extremely well recently. Given the continued need for data centers and other innovative technology, Nvidia could continue to experience strong returns.

American Express (AXP)

an American Express (AXP) credit card sticking out of someone's pocket
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American Express (NYSE:AXP) is a consumer finance company that provides integrated payment services for customers globally. It primarily offers charge cards, credit cards and other banking and financial products.

On April 19, AXP reported earnings for the first quarter of 2024, stating that total revenue increased by 11% and net income rose by 34%. American Express also noted that new card acquisitions increased to 3.4 million for Q1 2024. Additionally, approximately 60% of its customer base are Millennials and Gen Z consumers.

Full-year revenue growth for 2024 is expected to be between 9% and 11%. For Q1 2024, EPS beat analysts’ predictions, but total revenue was in line.

AXP, like CAT, was a major player in the Dow’s strong performance last year. It anticipates solid growth potential, and with its prime customer base shifting, AXP will have to continue to adapt to its changing customer base.

As of this writing, Noah Bolton did not hold (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 Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.

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