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Top 4 Blue-Chip Stocks Picks to Strengthen Your Portfolio
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U.S. stock markets have been on an impressive bull run over the past 18 months. However, the Dow, despite participating in the rally, lagged its peers, the S&P 500 and the Nasdaq Composite. Wall Street’s blue-chip index is up 5.4% year to date. On the other hand, the broad-market S&P 500 Index and the tech-heavy Nasdaq Composite have climbed 17.8% and 23.8%, respectively.
Meanwhile, the Dow recorded its all-time high of 40,077.40 on an intraday basis on Mar 20 and 40,003.59 on a closing basis on May 17. Technically, at its current level of 39,753.75, the Dow is well above its 50-day and 200-day moving averages of 39,035.26 and 37,365.23, respectively.
The 50-day moving average line is generally recognized as a short-term trendsetter in financial literature, while the 200-day moving average is considered a long-term trendsetter. Historically it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the asset (in this case the Dow Index) becomes a strong possibility.
Our Top Picks
We have narrowed our search to four Dow stocks that have strong earnings growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Finally, each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart shows the price performance of our four picks year to date.
Image Source: Zacks Investment Research
Amazon.com Inc. (AMZN - Free Report) is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. A deepening focus on generative AI is a major plus. Strengthening relationships with third-party sellers is a positive for AMZN.
The strong adoption rate of AWS is aiding AMZN’s cloud dominance. Improving Alexa skills along with robust smart home offerings are tailwinds. The advertising business is also pretty robust. AMZN enjoys a strong global presence and solid momentum among small and medium businesses. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are its other positives.
Zacks Rank #2 Amazon.com has an expected revenue and earnings growth rate of 11% and 57.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 60 days.
Apple Inc. (AAPL - Free Report) has been playing catch-up in the AI space compared with Alphabet, Microsoft and Amazon, its peers in the “magnificent seven” group. Following the launch of Apple Intelligence, AAPL’s competitive position is expected to improve. Moreover, AAPL is benefiting from increasing customer engagement in the services segment.
The expanding content portfolio of Apple TV+ and Apple Arcade helped drive subscriber growth. AAPL’s top-line benefits from strong growth in emerging markets and growing adoption of its devices among enterprises.
Zacks Rank #2 Apple has an expected revenue and earnings growth rate of 0.8% and 7.5%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 30 days.
Walmart Inc. (WMT - Free Report) has been gaining from its highly diversified business with contributions from various segments, channels and formats. WMT has been benefiting from an increase in in-store and digital channel traffic due to its robust omnichannel initiatives. Store-fulfilled delivery sales jumped 50% in the first quarter of fiscal 2025.
Walmart’s strategic focus on enhancing delivery services has also been rewarding, as evidenced by the constant increase in the market share for groceries. Upsides like these, along with growth in the advertising business, fueled WMT’s first-quarter results and led to an encouraging fiscal 2025 view.
Zacks Rank #1 Walmart has an expected revenue and earnings growth rate of 4.3% and 9.5%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 60 days.
Chevron Corp. (CVX - Free Report) is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corporation is expected to significantly strengthen CVX’s presence in oil-rich Guyana.
CVX seems one of the best-placed global integrated oil companies to achieve sustainable production ramp-up. We expect the company's average output during 2024 to rise 4-7% year over year, due to the PDC Energy acquisition and robust output in the showpiece Permian Basin region.
Zacks Rank #2 Chevron has an expected revenue and earnings growth rate of 2.3% and 0.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 30 days.
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Top 4 Blue-Chip Stocks Picks to Strengthen Your Portfolio
U.S. stock markets have been on an impressive bull run over the past 18 months. However, the Dow, despite participating in the rally, lagged its peers, the S&P 500 and the Nasdaq Composite. Wall Street’s blue-chip index is up 5.4% year to date. On the other hand, the broad-market S&P 500 Index and the tech-heavy Nasdaq Composite have climbed 17.8% and 23.8%, respectively.
Meanwhile, the Dow recorded its all-time high of 40,077.40 on an intraday basis on Mar 20 and 40,003.59 on a closing basis on May 17. Technically, at its current level of 39,753.75, the Dow is well above its 50-day and 200-day moving averages of 39,035.26 and 37,365.23, respectively.
The 50-day moving average line is generally recognized as a short-term trendsetter in financial literature, while the 200-day moving average is considered a long-term trendsetter. Historically it has been noticed in the technical analysis space that whenever the 50-day moving average line surges ahead of the 200-day moving average line, a long-term uptrend for the asset (in this case the Dow Index) becomes a strong possibility.
Our Top Picks
We have narrowed our search to four Dow stocks that have strong earnings growth potential for the rest of 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Finally, each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart shows the price performance of our four picks year to date.
Image Source: Zacks Investment Research
Amazon.com Inc. (AMZN - Free Report) is gaining on solid Prime momentum owing to ultrafast delivery services and a strong content portfolio. A deepening focus on generative AI is a major plus. Strengthening relationships with third-party sellers is a positive for AMZN.
The strong adoption rate of AWS is aiding AMZN’s cloud dominance. Improving Alexa skills along with robust smart home offerings are tailwinds. The advertising business is also pretty robust. AMZN enjoys a strong global presence and solid momentum among small and medium businesses. Growing capabilities in grocery, pharmacy, healthcare and autonomous driving are its other positives.
Zacks Rank #2 Amazon.com has an expected revenue and earnings growth rate of 11% and 57.9%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the last 60 days.
Apple Inc. (AAPL - Free Report) has been playing catch-up in the AI space compared with Alphabet, Microsoft and Amazon, its peers in the “magnificent seven” group. Following the launch of Apple Intelligence, AAPL’s competitive position is expected to improve. Moreover, AAPL is benefiting from increasing customer engagement in the services segment.
The expanding content portfolio of Apple TV+ and Apple Arcade helped drive subscriber growth. AAPL’s top-line benefits from strong growth in emerging markets and growing adoption of its devices among enterprises.
Zacks Rank #2 Apple has an expected revenue and earnings growth rate of 0.8% and 7.5%, respectively, for the current year (ending September 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the last 30 days.
Walmart Inc. (WMT - Free Report) has been gaining from its highly diversified business with contributions from various segments, channels and formats. WMT has been benefiting from an increase in in-store and digital channel traffic due to its robust omnichannel initiatives. Store-fulfilled delivery sales jumped 50% in the first quarter of fiscal 2025.
Walmart’s strategic focus on enhancing delivery services has also been rewarding, as evidenced by the constant increase in the market share for groceries. Upsides like these, along with growth in the advertising business, fueled WMT’s first-quarter results and led to an encouraging fiscal 2025 view.
Zacks Rank #1 Walmart has an expected revenue and earnings growth rate of 4.3% and 9.5%, respectively, for the current year (ending January 2025). The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 60 days.
Chevron Corp. (CVX - Free Report) is positioned as one of the top global integrated oil firms, set for sustainable production growth, particularly due to its dominant position in the lucrative Permian Basin. Further, the recent acquisition of Hess Corporation is expected to significantly strengthen CVX’s presence in oil-rich Guyana.
CVX seems one of the best-placed global integrated oil companies to achieve sustainable production ramp-up. We expect the company's average output during 2024 to rise 4-7% year over year, due to the PDC Energy acquisition and robust output in the showpiece Permian Basin region.
Zacks Rank #2 Chevron has an expected revenue and earnings growth rate of 2.3% and 0.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 30 days.