Consider these blue-chip stocks to buy for under $500 in April and update your portfolio for Q2

When it comes to picking stocks, all of us want to ensure capital gains and steady returns.

While the market cannot be timed, it is possible to pick stocks that have the potential to keep thriving, no matter the circumstances. Some companies have established themselves so well in the industry that no pandemic, war, or inflationary pressures can tamper its growth. Such blue-chip stocks to buy for under $500 in April can be an ideal addition to your portfolio before the companies announce results.

Starting with $500? Buying these blue-chip gems right now will ensure you make the most of the upside in the coming months. While a few are nearing their 52-week highs, some are nearing the 52-week lows, giving you a chance to grab them at a discount. These stocks can survive any hail or storm and will end 2024 on a high note. 

Microsoft (MSFT)

Tech dinosaur Microsoft (NASDAQ:MSFT) is one of the best blue-chip stocks to own. Trading at $424, the stock is up 14% year to date (YTD) and 47% in the year. Known for the operating system, Microsoft has become an integral part of our lives. It offers a wide range of products and services that cater to individuals and businesses. The Magnificent Seven stock could soar over $500 this year. 

Its timely investments in OpenAI have helped the company integrate AI into its products and services which has reflected in the strong financials. Also, it launched AI for cybersecurity professionals this month. The company’s cloud business is one of the biggest revenue generators. It has shown a 24% growth in the recent quarter and came in at $33.7 billion out of the total company sales of $62 billion. 

Companies are willing to pay for their AI tools. So this is proof that it has been successful in the integration of AI into its products. Additionally, MSFT saw profit margins expand in Q2 and reported a net profit margin of over 25%. And, it can expand the margins further while steadily growing revenue.

Finally, the company is well-positioned for the present and the future. Its AI prowess will ensure that it makes the most of the business opportunities. As one of the most valuable firms, Microsoft stock is a solid addition for all types of investors and will continue to reward them. 

Apple (AAPL)

A lot of people think Apple (NASDAQ:AAPL) is in trouble but don’t make the mistake of believing them. The company is indeed facing a lot of challenges at this point, but it has the potential to bounce back.

While it has seen a drop in iPhone sales in China, it could only be temporary, and the sales could pick up soon. Also, the company is working on updating the operating system to iOS 18 and integrating AI into its phones. A dip in quarterly sales doesn’t mean that the company is losing the market. In fact, Apple has enough liquidity to keep going, and its services segment is growing at a record pace.

Down 8% YTD, APPL stock is getting close to its 52-week low of $159 – a solid chance to load up. Trading for $170 today, it has been on a downward spree since announcing quarterly results.

With a drop in inflation, we can expect an improvement in consumer spending. So this could lead to an improvement in iPhone shipments. Also, the company is in talks to build the Gemini AI engine in its phone. While there hasn’t been a huge leap in terms of product features and improvements in the iPhone for several years, the company could bring something new this year and change the narrative. 

In short, it is too soon to give up on Apple stock right now. It is an attractive play with the potential to reward patient investors. 

Amazon (AMZN)

E-commerce giant Amazon (NASDAQ:AMZN) has come a long way from its humble beginning as a bookseller. The company is so much more than just an e-commerce business and has gained significant market share through its cloud services, Amazon Web Services (AWS). Currently, AWS holds a 31% market share.

Amazon has always used AI to enhance customer experience, an investment that is paying off. It will invest an additional $2.75 billion in Anthropic, an AI startup company to advance its commitment towards generative AI. 

AMZN stock is a blue-chip gem you should buy and hold forever. The company is one of the largest e-commerce companies and it provides everything online, including cars. Its cloud business is thriving and the advertising segment is going to become huge in the next two years. With the number of people visiting Amazon, marketers will be ready to pay for a top spot on the platform and this will ensure higher advertising revenue. 

The company will also spend $150 billion on data centers over the next decade to maintain its position in the cloud sector. When it comes to innovation, Amazon is the best out there. It reported impressive fourth-quarter results driven by holiday sales. Currently, the stock is trading at $180. While it is close to the 52-week high of $183, it could exceed $200 this year. 

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.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.

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