Pounce on These 7 High-Growth Blue-Chip Stocks Now (2024)

You can find plenty of growth opportunities if you look for blue-chip stocks. While some stocks in this category are low-risk, low-reward companies, other corporations can generate attractive long-term returns.

Some investors like to find hidden opportunities, but you don’t have to look very far to find high-growth blue-chip stocks that can deliver.Corporations with high market caps often amass lofty price pointsdue to impressive fundamentals.Some companies reach $1 billion withvery littlemerit, while it’s moredifficultto find sketchy $1 trillion corporations. In some cases, bigger is better.

Investors should prioritize companiesthat havenoteworthy competitive advantages, rising revenue, and profit margin expansion. Those elements allow companies to outperform the market and can move you closer to your long-term financial goals. Investors should keep these high-growth blue-chip stocks on their radars.

Alphabet (GOOG, GOOGL)

Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL) offers an essential service for many businesses. Some companies rely on the company’s advertising campaigns to reach new customers and scale their revenue. Businesses also compete for the top results for various keywords.

Corporations, small businesses and solopreneurs spend billions of dollarsevery monthhoping to get in front of more people. Whilebusinessescan choose from many advertising channels, fewchoicesdeliver the same reach and targeting as Alphabet.

While ad revenue is akeydriver, Google Cloud isalsogaining momentum.It representedmore than10% of Alphabet’stotalrevenue inQ1 2024.Overall revenue increased by 15% year-over-year in that quarterwhilenet income surged by 57% year-over-year.

Alphabet has outperformed the stock market for many years. Its stock is upby24% year-to-date and has gained 224% over the past five years.The stockcurrentlytrades at a 27 P/E ratioand hasa 0.46% yield.

Chipotle (CMG)

Consumers are willing to spend premiums on healthy food choices, much to the benefit ofChipotle(NYSE:CMG). The Mexican Grill chain has returned 36% to shareholders year-to-date and has logged a 329% gain over the past five years.

A recently announced 50-for-1 stock split catapulted Chipotle stock to all-time highs.However, shares were flat in Maywhichhasgiven long-term investors an opportunityto accumulate shares.

Chipotle’sfirst quarterresultshighlight why the company still has plenty of long-term gains in its future. Revenue increased by 14.1% year-over-year to reach $2.7 billion while diluted EPS jumped by 23.9% year-over-year.Chipotle closedoutthe quarter with a 13.3% net profit margin and 47 additional restaurants. The company added a Chipotlane in 43 of its restaurants.

Thefast foodrestaurant giant remains on pace to open 285-315 restaurants in 2024. This development will help Chipotle continue its expansion as it becomes a top choice for many consumers.

Walmart (WMT)

Walmart(NYSE:WMT) is a more stable business than most high-growth blue-chip stocks.It’s the leading grocer, and the company also hasa wide range of affordable products.Walmart’s business model has been working well for decades, andQ1 FY25 resultsdemonstrated that the company is still robust.

Revenue increased by 6.0%year-over-yearwhile adjusted EPS jumped by 22.4%year-over-year. Shares have been on a run this year and are upby 23% year-to-date.Furthermore,Walmartstock has gained 85% over the past five years.

The stockcurrentlytrades at a 34 P/E ratio and offers a 1.27% yield.Walmart recentlyraised its dividend by 9%which wasthe highest increase in more than a decade.Walmart has been paying and raising its dividend for 51 consecutive years.

Advertising and e-commerce revenue continue to lead the way. Both of these segments exhibited year-over-year growth rates above 20%. These components of Walmart’s business should result in higher profit margins and better results in the future.

American Express (AXP)

American Express(NYSE:AXP) trades at a reasonable valuation compared to other credit and debit card issuers.The fintech firm makes a small percentage of eachcredit and debit cardtransaction.These transactions have become quite common due to these cards’ convenience, rewards, security, and other perks.

American Express offers enticing welcome bonuses to encourage people to open accounts with them instead of competitors. The strategy has been working, as more than 60% of new account openings inQ1 2024came from Millennials and Gen Z consumers.

Impressive financials accompanied the new account openings. American Express reported 11% year-over-year revenue growth and 34% year-over-year net income growth.Profit margins rose to 16.9%which islowerthanmany ofits competitors.As American Express expands its margins,the company can become a compelling long-term pick.

The fintech stock has beenplaying its rolefor long-term investors. Shares are upby24% year-to-date and have almost doubled over the past five years.The stock trades at a 19 P/E ratio and has a 1.20% yield.

Cintas (CTAS)

Cintas(NASDAQ:CTAS) provides business supplies and safety equipment for more than one million businesses. The company’s vast customer pool and years of experience make it a compelling blue-chip stock.It’salsogotcaptivating returns that can entice any growth investor.The stock is upby14% year-to-date and has almost tripled over the past five years. The stock trades at a 46.5 P/E ratio and offers a 0.80% yield.

Cintas delivered solid financials inQ3 FY24. Revenue increased by 9.9% year-over-year to reach $2.41 billion.Net income was up by 22.0% year-over-yearand came to$397.6 million.Cintas also increased its quarterly dividend by 17.1% year-over-year. The company has maintained anannualized dividend growth rate of 21.05%over the past decade.

The stock has plenty ofsupportswithin Wall Street. Cintasis ratedas aModerate Buywith a projected 8% gain from current levels. The highest price target of $790 suggests that Cintas stock cango upby an additional 17.2%.

Caterpillar (CAT)

Caterpillar(NYSE:CAT) has been a leading construction equipment provider for almost 100 years. The company’s leaders have navigated through various economic booms and busts. Caterpillar has been around for a while, and its stock returns continue to impress investors. Shares are up by 12% year-to-date and have gained 164% over the past five years.

Caterpillar trades at a 15 P/E ratio and offers a 1.58% yield. The construction equipment firm has maintained anannualized dividend growth rate of 8.04%over the past decade. Caterpillar has raised its dividend for 31 consecutive years and has a low 23% dividend payout ratio. That low ratio should support dividend hikes for many years.

The company reportedmixed earningstostart2024.Revenue was flatyear-over-yearwhile net income jumped by 47.0%year-over-year.Higher profit margins will reduce the stock’s P/E ratioand resultin a more enticing valuation for long-term investors.

Deckers Outdoor (DECK)

Deckers Outdoor(NYSE:DECK) continues to gain market share from other athletic apparel giants. HOKA and UGG sales have helped the stock reach all-time highs.The stock is up by 60% year-to-date amidbeing added to theS&P 500 index. Shares are also upby 573% over the past five years.

While revenue growth has beennormal, the company accelerated its growth rate to wrap up fiscal 2024.Q4 FY24sales increased by 21.2% year-over-year to reach $959.8 million.Diluted earnings per share grewat an even faster rate, going from $3.46 to $4.95 per share.That’s a 43.1% year-over-year increase.

Higher profit margins and successes from the recent quarter havebroughtthe stock’s P/E ratioupto 37.It’s a bit higher thanit wasa few weeks ago, but rapidly growing net income can compensate for the recent surge. HOKA was the company’sfastest growingsegment andalsomade up more than half of the firm’s total revenue.

On thisdate of publication, Marc Guberti held long positions in GOOG and DECK. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.