Navigating Volatile Markets: Top Blue-Chip Stocks for Reliable Returns in 2024

Blue chip stocks are ideal for volatile markets because they offer low risk, reliable returns and strong stability due to their well-established business models, strong cash flows Their consistent dividends its low volatility makes it a safe investment, providing reliable growth even in times of market uncertainty.

Given this backdrop, investors may consider buying high-quality blue-chip stocks such as Visa Inc . (V), Salesforce, Inc. (CRM), and Caterpillar Inc. (CRM). (CAT) to achieve stable returns,

Why Blue-Chip Stocks Shine in Volatile Markets

The stock market is experiencing volatility as September begins with a notable sell-off. Worries about valuations, financial issues and AI-related tech stocks create uncertainty. Blue-chip stocks, by offering consistent growth, reliable dividends, and stable earnings, provide resilience in the face of turbulence. Thus, blue-chip stocks remain wise for investors who prioritize safety and performance.

Inflation is near the Fed’s 2% target, which means inflation has improved, and the Fed plans to cut interest rates to stimulate economic activity but the economy is showing signs of a possible slowdown, and it raises concerns about business growth and overall stability. Recent fragile jobs reports include challenging economic projections, even as cost cuts are expected.

Thus, overall economic outlook remains mixed, positioning blue-chip stocks as reliable investment options for strength and growth in uncertain times While that positive growth this in mind, let’s examine the key aspects of the three blue-chip picks.

Visa Inc. (V)

V is an international payment technology company that develops VisaNet, a networking platform that allows authorization, maintenance and resolution of payment transactions including Visa Direct, Visa B2B Connect, Visa Cross-Border Solution, Visa DPS (Data Processing Services), Credit, . Debit included , Prepaid Card products are offered.

Visa’s Strong Financial Performance and Recent Developments

On July 9, 2024, V partnered with HSBC to launch the Zing international payments application, allowing users to hold, send and trade multiple currencies worldwide The collaboration leverages V’s technology for seamless currency exchange and financial management.

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When looking at revenue for trailing 12 months, V’s 54.72% is 144.3% above an industry average of 23.39%. Its trailing 12-month return on total assets of 20.99% is significantly above the industry average of 1.05%. Likewise, its trailing 12-month common equity return of 49.85% is 385.8% above the industry average of 10.26%.

For the fiscal quarter ended June 30, 2024, V revenue rose 9.9% year-over-year to $8.90 billion. The company’s operating income rose slightly from its value a year ago, to $5.94 billion. Additionally, its non-GAAP net income and non-GAAP EPS were $4.91 billion and $2.42 billion, respectively, up 9.1% and 12% year-over-year.

For the quarter ending September 30, 2024, V’s revenue is expected to grow 10.1% annually to $9.48 billion. For the same quarter, its EPS is expected to grow 10.6% annually to $2.58. It subsequently exceeded consensus EPS estimates in each of the four quarters. V’s stock increased 15.4% during the past year and closed its last trading session at $285.34.

V’s POWR Ratings reflect strong optimism. It has an overall rating of B, which translates to Buy in our proprietary rating system. POWR Ratings evaluates stocks using 118 different factors, each with its own weight.

It has a B grade for Momentum, Stability and Quality. It ranks #12 out of 47 stocks in the consumer financial industry. In addition to the above, we also ranked V in Achievement, Value and Sensitivity. Find V’s full ratings here.

Vendors, Inc. (CRM) 1.1.

CRM provides customer relationship management (CRM) technology that connects the company with customers globally. The company’s service includes sales to gather data, track leads and growth, forecast opportunities, gain insights through analytics and relationship intelligence, and provide quotes, contracts and invoices

On September 5, 2024, CRM announced that it would acquire the company for $1.9 billion to enhance its data security and processing capabilities. The acquisition aims to strengthen CRM’s platform security and compliance and expand AI-powered data insights.

On July 24, 2024, CRM Workday announced a strategic partnership to bring AI-powered employee services. This agent will facilitate activities such as onboarding and business development by integrating CRM technology with Workday HR and finance data.

In terms of trailing-12 month EBITDA margin, CRM’s 25.63% is 157.9% higher than the industry average of 9.94%. Likewise, its trailing 12 months profit margin of 76.35% is above the industry average of 49.43% by 54.5%. It has trailing-12-month EBIT margin of 19.06%, surpassing the industry average of 4.95% by 284.9%.

For the second fiscal year ending July 31, 2024, CRM’s total revenue increased 8.4% year-over-year to $9.33 billion. Its non-GAAP income from operations rose 15.5% from its year-ago value to $3.14 billion. Likewise, the company reported non-GAAP earnings per share and non-GAAP net income of $2.50 billion and $2.56 per share, respectively, up 19.1% and 20.8%, respectively, from the prior year year the third of these

The Street expects CRM EPS and revenue for the quarter ending October 31, 2024 to increase 16% and 7.2% year-over-year to $2.45 and $9.35 billion, respectively, and EPS consensus on in each of the third consecutive year -Exceeds estimate. The stock increased 9.5% during the past year, to finish its last trading session at $246.16.

Not surprisingly, CRM has an overall rating of B, which translates to Buy in our proprietary POWR Ratings system.

It has a B grade for Sentiment and Quality. Software – Ranks #15 out of 125 stocks in the application industry. Click here for the latest rankings for CRM’s Growth, Value, Momentum, and Stability ratings.

Caterpillar Inc. (CAT) available .

CAT worldwide manufactures and sells construction and mining equipment, diesel and natural gas off-highway engines, industrial gas turbines, diesel and electric engines Through construction, infrastructure, energy transportation, finance of products, and all other aspects of business.

On August 13, 2024, CAT announced a major expansion at its large engine plant in Lafayette, Indiana, adding 100 new jobs. The investment aims to meet growing global demand for new engines and aftermarket products, driven by cloud computing and AI.

In terms of trailing-12-month EBIT margin, CAT’s 21.29% is 112% above the industry average of 10.04%. Its Capex / Sales ratio of 4.66% is 59.1% higher than the industry average of 2.93%. Moreover, its trailing-12-month leveraged FCF margin of 11.12% is 72.2% above the industry average of 6.46%.

For the second quarter ended June 30, 2024, CAT reported total sales and revenue of $16.69 billion. Its net income from financial products was $849 million, up 9.8% from a year earlier. Additionally, the company’s adjusted net income and adjusted earnings per share increased 2.6% and 7.9% year-over-year to $2.93 billion and $5.99, respectively

Analysts expect CAT’s revenue for the quarter ending March 31, 2025 to increase slightly year over year to $15.81 billion. Its EPS for fiscal 2024 is expected to grow 4.1% annually to $22.08. In each of the trailing quarters, the Street beat EPS estimates. CAT stock increased 28.8% during the last nine months and ended its last trading session at $334.16.

CAT’s POWR Ratings reflect strong optimism. It has a B grade for accuracy and quality. A-Rated Industrial – is #42 of 78 stocks in the machinery industry. Click here to view CAT’s Growth, Value, Momentum and Sentiment ratings.

 Consider investing in three high-quality blue-chip stocks that have proven resilience in volatile markets. These stocks offer stability and potential long-term growth, making them suitable for risk-averse investors. With their solid track records and established market presence, these stocks provide an opportunity to navigate through uncertain times while potentially generating substantial returns.

Get your hands on this special report and 3 underrated companies with tremendous potential for growth even in today’s volatile markets.

Shares of V traded down $3.80 (-1.33%) during midday trading on Wednesday, reaching $281.54 per share. Year-to-date, V has gained 8.76%, compared with a 16.59% rise in the benchmark S&P 500 index during the same period.