The average investor probably appreciates no-hassle investments more than anything else. Most investors simply want to set it and forget it when it comes to their portfolio. Far fewer investors are willing or capable of spending their time tethered to trading stations in an attempt to find Alpha. That’s part of the reason blue-chip stocks are such a strong investment to buy.
They’re generally hassle-free and can be reasonably expected to grow consistently over the long term. That’s what happens to firms that have established leading positions in their respective industries and sectors. They tend to benefit from the stability that naturally flows from their dominant positions.
In short, investing in any of these blue-chip stocks to buy will likely lead to long-term gains and minimal headaches.
American Express (AXP)
American Express (NYSE:AXP) is an excellent example of a blue-chip stock that is likely to provide long-term gains and minimal headaches. The company’s most recent earnings report provides direct evidence of that suggestion.
First quarter revenues increased by 11% while earnings per share jumped up by 39%. That strong performance allowed the company to reaffirm its previous 2024 guidance. In turn, that is a prime example of the relative ease of investing in American Express. Investors aren’t going to find many companies that can steadily grow and reward shareholders like American Express.
It’s well known that Americans continue to use credit cards at historical levels. Credit card debt has also ballooned to historic highs. However, American Express caters to a more affluent membership base that tends to use credit more wisely. That suggests that the company represents less risk than does some of its counterparts. I’m not arguing that those other firms including Visa (NYSE:V) aren’t investment worthy, only that American Express might be slightly better.
Costco (COST)
Costco (NASDAQ:COST) has performed exceptionally well over the past 3 years. That is evident in the fact that the stock has increased from $75 in 2021 to $723 today.
Costco stock has also outperformed the S&P 500 during that period with a slight exception in 2022 when it dropped by 20%. During the same time frame the S&P 500 fell by 19%. Other than that slight exception, Costco has outpaced the growth in the S&P 500 by nearly a factor of two. Costco remains one of the best individual stocks to consider for those looking to identify future winners.
Costco revenues reached $23.48 billion in the month of March. That represents a 9.4% increase year-over-year. The company looks particularly strong in relation to e-commerce. Sales improved by 28.3% over that same time frame. During the same period a year earlier they already improved by more than 14%.
The company truly appears to be moving from strength to strength.
Walmart (WMT)
Walmart (NYSE:WMT) is going to continue to be a one of the no hassle, set it and forget it blue-chip stocks to buy for investors.
Walmart has historically battled Amazon (NASDAQ:AMZN) for retail domination. While WMT dominates the brick-and-mortar space, Amazon controls e-commerce. Within that, Walmart is particularly strong in the grocery sector and is the largest grocer in the U.S. overall. Unsurprisingly, Amazon is aiming to pull market share away from Walmart. The company recently announced that it will offer a grocery delivery subscription.
Meanwhile, Walmart continues to rapidly grow its e-commerce business. That segment recently crossed the $100 million annual revenue threshold. The point here is very simple: any investor seeking a no hassle retail stock should consider Walmart or Amazon. The two firms Continue a tit-for-tat war across multiple verticals while dominating retail overall.
While I’m advocating for Walmart in this article, I could just as easily be advocating for Amazon.
On the date of publication, Alex Sirois 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.
