Is Tesla a blue chip stock?
The problem is that despite being included in blue chip ETF indexes, companies like Nvidia and Tesla aren't truly blue chip stocks, George Pearkes, an analyst at Bespoke, told CNN. They're much more volatile. Tesla, for example, is down about 23% so far this year.
From a financial perspective, Tesla has a strong balance sheet with $27 billion in cash and equivalents. Further, for the first nine months of 2023, Tesla reported operating cash flow of $8.9 billion. With high financial flexibility, Tesla is well-positioned to make some big investments.
These blue-chip stocks will continue to provide market-beating returns in April. Amazon Inc (AMZN): This tech behemoth is firing on all cylinders following its highest-ever monthly close. Netflix Inc (NFLX): The streaming giant is bolstering up its lineup with newly added premium tiers.
Now, Nvidia has a market capitalization of more than $2.2 trillion, making it the third biggest company in the world by market cap. It's unquestionably a blue chip stock. NVDA's also off to a great start in 2024, up more than 80%. It gets an “A” rating in the Portfolio Grader.
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.
- Reliance Industries Ltd. Conglomerate.
- Tata Consultancy Services Ltd. Information Technology.
- Infosys Ltd. Information Technology.
- HCL Technologies Ltd. Information Technology.
- Hindustan Unilever Ltd. Fast-Moving Consumer Goods.
- ITC Ltd. ...
- Nestle India Ltd. ...
- HDFC Bank Ltd.
Key Takeaways. Shares of Tesla fell as Wells Fargo said the EV maker is likely to see no sales growth in 2024. The bank cut its rating on the stock to underweight and lowered its price target to $125 from $200. Tesla's struggling to sell cars even as it lowers prices in various markets, and that's affecting its profit.
Here are three blue-chip stocks to buy at a 52-week low in April. Apple (AAPL): The consumer electronics giant's stock is now negative over the last 12 months. Boeing (BA): The aircraft manufacturer's share price is likely to slide lower after its upcoming Q1 earnings.
| Stock (ticker) | Market Capitalization |
|---|---|
| AbbVie Inc. (ABBV) | $320 billion |
| Coca-Cola Co. (KO) | $256 billion |
| Nike Inc. (NKE) | $138 billion |
| Goldman Sachs Group Inc (GS) | $133 billion |
Alphabet (GOOG, GOOGL): Alphabet's non-search AI potential makes it a must-own blue chip for the long haul.
Does Warren Buffett own NVDA?
As of March 15, 44% ($159 billion) of the $366 billion portfolio Buffett oversees at Berkshire Hathaway was being put to work in three widely owned AI stocks -- and no, Nvidia isn't one of them.
Some examples of blue chip stocks are Coca Cola, Apple, IBM, American Express, McDonalds, DuPont, and American Express.
As the most reliable 5G carrier, Verizon (NYSE:VZ), commands blue-chip status with its budding relationships and consistent dividends.
| 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 |
| Stock | 2024 return through March 31 |
|---|---|
| MicroStrategy Inc. (MSTR) | 169.9% |
| SoundHound AI Inc. (SOUN) | 177.8% |
| Vera Therapeutics Inc. (VERA) | 180.4% |
| Avidity Biosciences Inc. (RNA) | 182% |
As a small example, Costco Wholesale (NASDAQ:COST) has trended higher by 226% (capital gains) in the last five years. This has led to this list of blue-chip stocks under $20.
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| Abbott Laboratories (ABT) | Health care | 1.9% |
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
| T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
- 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)
| Company | Performance (Year) |
|---|---|
| Netflix Inc. (NFLX) | 83.88% |
| Applied Materials Inc. (AMAT) | 80.20% |
| KLA Corp. (KLAC) | 79.89% |
| Advanced Micro Devices Inc. (AMD) | 77.90% |
Tesla's beginning to 2024 was worse than expected. Earnings fell 55% in the first quarter, and quarterly sales declined year-over-year for the first time in nearly four years. Both numbers were below analysts' average estimate.
Does Tesla stock have a future?
The average price target for Tesla is $182.58. This is based on 34 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $310.00 ,the lowest forecast is $22.86. The average price target represents 24.16% Increase from the current price of $147.05.
Gianarikas is relatively bullish on Tesla shares, rating them Buy with a price target of $234 a share, though he expects numbers will look weak. Wall Street is projecting operating profit margins of just under 7%, down from about 11% in the first quarter of 2023 and down from about 19% in the first quarter of 2022.
| 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% |
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.
Blue-chip stocks typically have solid balance sheets, steady cash flows, proven business models, and a history of increasing dividends. For that reason, investors generally consider blue-chip stocks to be among the most secure stock investments because of their track records and performance history.
