The top blue-chip stocks to buy can give investors more confidence. These stocks typically have good fundamentals and some growth catalysts. Blue-chip stocks have more stability than growth stocks and rely less on momentum investing.
However, you also don’t want to get stuck with a dud. Some blue-chip stocks have stayed flat for several years and don’t have as many opportunities to reward long-term investors. Individuals can choose from many stocks that offer strong financials. These are some of the top blue-chip stocks for April and beyond.
Walmart (WMT)
Walmart (NYSE:WMT) has been offering affordable prices for decades. The company has been around since 1962 and has over 10,500 stores across 19 countries. The stock has been as reliable as the brand. Shares are up by 14% year-to-date and have gained 79% over the past five years.
Walmart stands to be a winner from the Federal Reserve’s recent decision to keep interest rates elevated. There’s even the possibility of rates not getting cut this year. Higher interest rates increase the cost of borrowing money and make it less accessible to consumers. When that happens, people must find ways to save money on products and services. Many people will turn to Walmart for cheaper goods. This development will help the company attract wealthier customers.
The retail giant isn’t only winning with its stores. Global e-commerce sales increased by 23% year-over-year, while advertising revenue jumped by 33% year-over-year in Q4 FY24. The company hiked its dividend by 9%, the highest raise in over a decade. The noteworthy dividend hike suggests Walmart can return additional value to shareholders.
Visa (V)
Most people use credit and debit cards to buy goods and services. The card issuers and financial institutions incentivize people to use these cards. Consumers can receive cash back, points, travel rewards, and other perks when they purchase products with their cards. If you use a credit card, you also have the opportunity to improve your credit score with on-time payments and a low credit utilization ratio.
Visa (NYSE:V) is the leader in this industry and has a market cap north of $550 billion. The stock has been a steady performer, with a 22% gain over the past year and a 72% gain over the past five years. Shares trade at a 35 P/E ratio and offer a 0.76% dividend yield.
Consumer spending remained strong at the start of the year and helped the fintech firm report 9% year-over-year revenue growth in Q1 FY24. Net income increased by 17% year-over-year, bringing the company’s net profit margin to 56.6%. Good profit margins, financial growth and a vast moat make Visa a blue-chip stock to consider.
Deckers Outdoor (DECK)
Deckers Outdoor (NYSE:DECK) is the athletic apparel company behind Ugg and Hoka. The stock recently got hit with bad news as Hoka sales are projected to slow. However, this presents a long-term buying opportunity.
DECK stock trades at a 29 P/E ratio compared to Nike’s (NYSE:NKE) 26 P/E ratio. Nike earned less income year-over-year and recently had a revenue growth rate below 1%. Meanwhile, Deckers Outdoor reported 16% year-over-year revenue growth and 40% year-over-year net income growth in Q3 FY24. Deckers Outdoor even reports better profit margins than Nike.
It doesn’t make sense for Deckers Outdoor to have a valuation close to Nike’s. The stock deserves to trade at a larger premium to Nike’s valuation since it’s reporting double-digit growth rates for revenue and net income.
Even if Hoka sales experience a slowdown, it’s not a problem specifically for Hoka. The company’s sneakers have been taking market share from Nike and other top competitors. Deckers Outdoor raised its guidance after reporting its Q3 FY24 results. While slowdown news can intimidate short-term investors, the company offers an enticing multi-year opportunity.
On this date of publication, Marc Guberti held a long position in DECK. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.