Investing in blue-chip stocks is about building a steady portfolio that can withstand any market situation. While there is no guarantee of solid returns, there are times when blue-chip stocks soar over 100% in just a few months and this is when you can make the most of your investment. Many blue-chip stocks in the market may not deliver 100% returns in a few months but they can certainly keep moving upward in the coming months. These stocks can generate passive income in the form of dividends and keep your money safe. Such companies have a strong balance sheet, impressive products, and a solid history. Let’s take a look at the seven blue-chip stocks to buy on the dip.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is a tech dinosaur that has been around for as long as I can remember. The company offers products and services that have become an integral aspect of several businesses. It proved its strength in the recent quarterly results when it beat estimates.
Microsoft has invested $13 billion in OpenAI and expects to start generating returns from this investment in 2024. In the quarter, it saw a 27% jump in net income, and revenue came in at $56.5 billion, up 13% year-over-year (YOY).
EPS stood at $2.29 and the company announced a quarterly dividend of $0.75. The company is leading with the cloud business and has hiked the full-year projections. MSFT stock is exchanging hands at $327 and is a buy on every single dip. It will not go below $300 anytime soon so make your move while you can.
Alphabet (GOOG, GOOGL)
Microsoft’s biggest competitor, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) reported mixed earnings – and investors weren’t happy. Alphabet did report better-than-expected results, but the Cloud segment was a disappointment. It reported a revenue of $79.69 billion and an EPS of $1.65.
However, the cloud sales hit $8.4 billion, a 22% YOY growth, but Wall Street was expecting a bigger number. GOOG stock has dropped 6% in the past month and is trading at $122 today. I believe this is a temporary drop and the bigger picture looks solid. It owns the largest market in Google Search and has been using AI to strengthen its position in the industry.
This dip should be considered an opportunity to buy the stock because Alphabet is here to stay and it has a diverse portfolio of products that will continue to remain in demand for years to come.
Blue-chip stocks to buy on a dip: Tesla (TSLA)
Already a leader in the electric vehicle industry, Tesla (NASDAQ:TSLA) has recently suffered due to the pullback in consumer spending. However, the stock has gained 90% year-to-date (YTD) and is trading at $205 today. The third quarter earnings weren’t as expected and this led to a drop in the stock.
It is down 14% in the past month and this is your chance to grab the stock. However, I believe the stock will continue the downward momentum for a few weeks before it rises. In the third quarter, Tesla only saw a 9% YOY growth in revenue and net income dropped by 44% while the free cash flow was down 74% YOY.
Tesla is known for innovation and I am certain it will bounce back in a few months, but now is the time to buy this blue-chip stock on the dip.
Amazon (AMZN)
E-commerce giant Amazon (NASDAQ:AMZN) has become a household name today and it is set to gain in the upcoming holiday season. AMZN stock has enjoyed a rally in 2023 and the stock is up 39% YTD. Its Amazon Web Services is a strong growth driver while the company is also seeing solid growth in other business segments including Amazon Prime.
Its financials have much to say about the company’s potential. Revenue jumped 13% YOY and came in at $143.1 billion. AWS revenue stood at $23.1 billion and the ad revenue was $12.1 billion. This shows that the company is recovering from the 2022 downturn.
People will continue to shop and Amazon will continue to innovate. This is one company that will never go out of demand and holding AMZN stock will ensure steady growth and capital appreciation.
Visa (V)
There are several reasons to love the fintech stock Visa (NYSE:V). One of the biggest players in the industry, Visa is making the most of the transition towards digital payments. In the recent quarter, the company reported a solid profit margin of over 50% and an operating margin of 63%.
Management expects 10% annual revenue growth and I believe there is a lot more potential for the company. Visa is a very safe stock that will bring stability to your portfolio. Furthermore, as the transition from cash to online payments continues, the company is set to gain.
V stock is exchanging hands at $231 and is inching very close to the 52-week high of $250. Do not wait for a dip in this stock – buy it while you can. The stock will continue to soar higher in 2024 as the economy improves and consumer spending increases.
Nvidia (NVDA)
My favorite tech stock, Nvidia (NASDAQ:NVDA) has soared 181% YTD. Not many stocks have the potential to achieve this and I do not think any other company will be able to achieve this feat in the near term. Trading at $403 today, the stock has dropped 5% in the past month and now is your chance to buy.
Nvidia has been enjoying the success of artificial intelligence (AI) and it beats estimates and impresses investors with each quarterly result. While the U.S. has currently halted chip exports to China, I believe that we will see its impact in the long term.
However, Nvidia has enough customers to keep going even if the exports are restricted. Nvidia may not be able to repeat what it achieved this year but this is one stock that will continue growing and it is worth so much more. Earnings have steadily grown and we could see another solid quarterly report very soon.
Meta Platforms (META)
One of the blue-chip stocks to buy on a dip is Meta Platforms (NASDAQ:META). One of the Magnificent Seven, META is up 130% YTD. The company heavily relies on advertising revenue and it did see a slowdown in the segment earlier. It suffered in 2022 but has made a good comeback.
In the recent quarter, it beat revenue estimates and saw a 23% rise to hit $34.15 billion and EPS increased to $4.39. The tech giant’s operating margin doubled to reach 40% and this is nothing but impressive.
Management warned about the macroeconomic factors that could lead to volatility in the coming months. This led to a drop in stock which is down 8% in the past week. It is trading at $288 today and is a buy before it hits $300. This was the company’s most profitable quarter and I believe the growth momentum will continue through 2024.
On the date of publication, Vandita Jadeja 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 InvestorPlace.com Publishing Guidelines.