June represents a unique opportunity for investors to capitalize on the best blue-chip stocks to buy. With economic indicators pointing towards a new bull market, investing in these established companies can secure your financial future.
However, with so many options available, it can be challenging to determine which blue-chip stocks are the most promising. A good place to start is companies within the Dow Industrial Average. This index tracks 30 large cap blue-chip companies in the U.S. that are giants in their respective fields. They benefit from strong fundamentals, including solid earnings growth and capital returned to shareholders through dividends.
It could be the optimal time to get in on these notable trailblazers to avoid missing out on significant future returns.
Now, let’s unpack the three best blue-chip stocks to buy in June.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) is undoubtedly one of the best blue-chip stocks to buy in June. As the largest company in the world by market capitalization, Microsoft is leading the AI revolution forward.
Microsoft is currently at the forefront of the generative AI boom. The company’s cloud computing arm, Azure, has experienced exponential growth. That growth is set to continue as AI workloads continue to be scaled and deployed in the cloud. Cloud computing and artificial intelligence go hand in hand, providing the MSFT stock fertile ground for market share gains. Microsoft currently holds a 25% cloud infrastructure market share as of Q1 2024.
Moreover, its latest quarterly financial results validate the strength of its cloud business, which boosted operating income in the quarter. The convergence of AI and cloud computing has completely reshaped its economic future, providing the company with fertile ground to outperform over the long term.
Walmart (WMT)
Walmart (NYSE:WMT), the world’s largest retailer, has successfully shifted toward e-commerce. Its omnichannel strategy is working, continuing to drive meaningful sales growth outside of its brick-and-mortar business.
Walmart’s focus on e-commerce has paid off, with online sales growing significantly in recent years. The company’s ability to adapt to changing consumer preferences and embrace the digital age demonstrates its resilience and adaptability. Additionally, it continues to see strength in international markets, led by Flipkart, China and Walmex.
In Q1 FY25, Walmart reported impressive results, and its stock has been up 10% in the past month. Revenue increased 6% YOY to $161 billion, with global e-commerce sales up 21% from the year prior. Its global advertising business is also gaining momentum, driven by a 26% bump from Walmart Connect. With strong guidance for the 2025 fiscal year, WMT stock remains one of the top blue-chip stocks to buy now.
American Express (AXP)
American Express (NYSE:AXP) has a long standing reputation for providing premium products and services to its customers. Over the last several years, the company has seen a notable surge in revenue and profitability as it redefines its long term strategy.
American Express has carefully crafted its strategy to appeal to the Millenial and Gen Z populations. This strategy has been paying off, boosting the demand for its array of product offerings. Moreover, credit card and consumer spending remain strong despite higher interest rates. New card acquisitions continue to see sequential growth, and its key investments in marketing are driving engagement for its premium customers.
In Q1 FY24, revenue increased 11% YOY to $15.8 billion. EPS swelled 39% YOY to $3.33 per share, with the Millenial and Gen Z segments accounting for 60% of new customer count acquisitions. AXP stock’s strong brand recognition, best-in-class credit metrics and diverse business model position it for growth in 2024 and beyond.
On the date of publication, Terel Miles did not have (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.
