Is Apple a blue chip or growth stock?
Apple, Berkshire Hathaway, Coca-Cola, Johnson & Johnson, and American Express are all blue chip stocks with operations primarily based in the U.S.
Apple Inc (NASDAQ:AAPL) is undoubtedly one of the best blue chip stocks to buy and hold according to hedge funds. Apple Inc's (NASDAQ:AAPL) products gain a lot of traction due to Apple Inc's (NASDAQ:AAPL) innovation and brand name attraction.
Apple is a growth stock known for its innovative product development and consistent revenue and earnings growth.
Blue-Chip Stocks to Buy: McDonald's (MCD)
The Golden Arches is as blue-chip as stocks come. The hamburger and restaurant chain has been a reliable performer for decades, trades at a reasonable 24 times future earnings estimates, and pays a quarterly dividend that yields a strong 2.40%.
| Company | Market Cap (Rs. cr) | ROA(%) |
|---|---|---|
| Wipro | 249,400 crores | 7.47% |
| Bajaj Auto | 215,100 crores | 14.87% |
| Adani Ports & Special Economic Zone | 247,700 crores | 6.03% |
| ITC Limited | 568,600 crores | 18.20% |
| Label | Value |
|---|---|
| Sector | Technology |
| Industry | Computer Manufacturing |
| 1 Year Target | $200.00 |
| Today's High/Low | $170.64/$168.0 |
Blue-chip stocks are from companies that are large, well-established, and financially sound. These companies have strong brand names and reputations, and they generate dependable earnings. Blue-chip companies usually boast consistent dividends and are often considered to be less risky, given their financial stability.
Dividend Data
Apple Inc.'s ( AAPL ) dividend yield is 0.57%, which means that for every $100 invested in the company's stock, investors would receive $0.57 in dividends per year. Apple Inc.'s payout ratio is 14.95% which means that 14.95% of the company's earnings are paid out as dividends.
Slowing growth
Apple's product sales stagnated, while its services continue to put up record quarter after record quarter. The problem is that products make up over 80% of revenue and 69% of gross profit. Services include Apple TV+, Apple Music, Apple Podcasts, Apple Books, and more.
Fair Value Estimate for Apple
With its 2-star rating, we believe Apple's stock is overvalued compared with our long-term fair value estimate of $160 per share.
Is Tesla a blue-chip stock?
The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN. They're much more volatile. Tesla, for example, is down about 23% so far this year.
Anchored by core Google properties and its $150 billion stockpile, Alphabet has the stability and vision to drive transformational growth, which is why it's on this list of stable blue-chip stocks. While ad revenue missed last quarter, Alphabet's Q4 sales still rose 13% year-over-year to $86 billion.
| Stock (ticker) | Market Capitalization |
|---|---|
| Johnson & Johnson (JNJ) | $378 billion |
| Procter & Gamble Co. (PG) | $377 billion |
| AbbVie Inc. (ABBV) | $320 billion |
| Coca-Cola Co. (KO) | $256 billion |
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| Abbott Laboratories (ABT) | Health care | 1.9% |
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
| T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
Amazon joins 29 other 'blue chip' companies in the Dow Jones Industrial Average. Amazon.com Inc. is joining the ranks of one of Wall Street's oldest and most exclusive stock indexes: The Dow Jones Industrial Average.
Arthur Levinson is Apple's largest individual shareholder, owning 4.43 million shares as of February 2024. His stake accounts for only 0.028% of Apple's total outstanding stock. Levinson chairs Apple's board and is also the co-founder and CEO of Calico, an Alphabet Inc.
Is Apple stock a Buy, Sell or Hold? Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 67 buy ratings, 30 hold ratings, and 2 sell ratings.
The average price target for Apple is $201.03. This is based on 28 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $250.00 ,the lowest forecast is $158.00. The average price target represents 16.30% Increase from the current price of $172.86.
Costco Wholesale
Prior to the pandemic, Costco (COST -0.11%) and Carnival (CCL 1.58%) were both considered resilient blue chip stocks for long-term investors.
How do you identify blue chip stocks?
Stocks that are considered blue-chip stocks generally have these things in common: Large market capitalization. Market cap is a measure of the size and value of a company. Blue-chip stocks are often large-cap stocks, which typically means they have a market valuation of $10 billion or more.
Blue Chip Stocks: A Reliable Choice in Any Market
No one could resist investing in large, established companies with a long record of dividend payments and financial stability. Companies like Coca-Cola, Verizon Communications and Bank of America are all great examples.
The financial health and growth prospects of AAPL, demonstrate its potential to underperform the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this would not be a good stock for momentum investors with a Momentum Score of F.
High Dividend: AAPL's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (4.87%).
Apple's growth rate has already been lackluster
A slowing growth rate isn't new for Apple; it has been a problem for the past couple of years. As interest rates have been rising and consumer budgets have been tightening up, Apple has been seeing a slower rate of growth for its business.
