Is Verizon a blue-chip stock?
Blue chip stocks have long been synonymous with stability and reliability. Named for the most valuable poker chips, these stocks supposedly represent the crème de la crème of the corporate world, companies like Disney, General Motors and Verizon.
As the most reliable 5G carrier, Verizon (NYSE:VZ), commands blue-chip status with its budding relationships and consistent dividends. Due to early access to specialized high-speed radio frequencies, VZ had a head-start for ironing out network connectivity issues.
- The Best Blue Chip Stocks of April 2024.
- Apple Inc (AAPL)
- JP Morgan Chase & Co (JPM)
- Walmart Inc (WMT)
- Johnson & Johnson (JNJ)
- Procter & Gamble Co (PG)
- AbbVie Inc (ABBV)
- Coca-Cola Co (KO)
A blue chip stock is a company that typically has a large market cap, a sterling reputation, excellent financials, and many years of success in the business world. A blue-chip index seeks to track the performance of financially stable, well-established companies that provide investors with consistent returns.
With its 4-star rating, we believe Verizon's stock is undervalued compared with our long-term fair value estimate of $54 per share, which equates to roughly 8 times our 2024 EBITDA forecast. That valuation also implies an 8.2% free cash flow yield based on the firm's performance in 2023.
| Name | Symbol | % Loss |
|---|---|---|
| Bajaj Finance | BAJFINANCE | -10.37 |
| Zee Entertainment Enterprises Ltd. | ZEEL | -8.51 |
| Bajaj Finserv Ltd. | BAJAJFINSV | -6.82 |
| Godrej Consumer Products Ltd. | GODREJCP | -6.41 |
The Bottom Line
To be considered a blue chip, a company must be well-known, well-established, and well-capitalized. Blue chip companies must have been in business long enough to have weathered many different economic situations, showing that they can remain stable and profitable as circ*mstances around them change.
Number of Hedge Fund Investors: 134
Apple Inc (NASDAQ:AAPL) is undoubtedly one of the best blue chip stocks to buy and hold according to hedge funds.
Many of the largest companies in the S&P 500 or the Dow 30 are blue chips, such as IBM, JPMorgan Chase, Walmart, Microsoft, and American Express.
| Stock | 2024 return through March 31 |
|---|---|
| Janux Therapeutics Inc. (JANX) | 250.9% |
| Trump Media & Technology Group Corp. (DJT) | 254.1% |
| Super Micro Computer Inc. (SMCI) | 255.3% |
| Viking Therapeutics Inc. (VKTX) | 340.6% |
Which stock will boom in 2024?
| 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 |
For this purpose, we created a list of stocks that could make you rich in 2024, and some of them include Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL), and Advanced Micro Devices, Inc. (NASDAQ:AMD). A financial analyst looking through a microscope at stocks to determine their market value.
AT&T Inc.
AT&T is one of the original blue chips. The company was established way back in 1885 as a subsidiary of the Bell Telephone Co.
Cash flow from operations was $37.5 billion. Verizon's outlook for 2024 was that it would be modestly higher than 2023 across most items. Investors who want a solid stock in an uncertain market should look at Verizon's powerful brand and its earnings, yield, and balance sheet.
Verizon stock has received a consensus rating of hold. The average rating score is Baa1 and is based on 26 buy ratings, 31 hold ratings, and 2 sell ratings.
Stock Price Forecast
The 16 analysts with 12-month price forecasts for Verizon stock have an average target of 44, with a low estimate of 36 and a high estimate of 50. The average target predicts an increase of 9.17% from the current stock price of 40.31.
Whether you consider yourself risk-averse or are simply looking for a low-risk addition to your portfolio, blue chip stocks offer a good way to start investing. Because blue chip companies are relatively stable, blue chip stocks are considered a low-risk investment.
Blue chip stocks are usually less risky and thus considered safer than other stock-based investment options. That's because one of the major determining factors of a blue chip stock is that it must be a well-capitalized company, meaning it should have the financial fortitude to endure an inevitable economic downturn.
As a result of their track records and performance histories, investors generally consider blue-chip stocks to be among the most secure stock investments.
- Broadcom Inc. (NASDAQ:AVGO)
- Eli Lilly and Company (NYSE:LLY)
- JPMorgan Chase & Co. (NYSE:JPM)
- Berkshire Hathaway Inc. (NYSE:BRK-B)
- Apple Inc. (NASDAQ:AAPL)
- Visa Inc. (NYSE:V)
- Alphabet Inc. (NASDAQ:GOOG)
What stocks to buy in 2024?
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
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.
Long-term investors looking for a reliable and refreshing addition to their portfolio should consider grabbing a few shares of Coca-Cola. It's not the most exciting growth stock of 2024, but you can't really beat this sweet combo of safety and cash returns.
These blue chip stocks to mitigate the risk of an economic slowdown. Walmart (WMT): Many consumers turn to Walmart to save money. Procter & Gamble (PG): The company sells many essential products. Alphabet (GOOG,GOOGL): Many businesses advertise with Google.
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.
