3 Blue-Chip Stocks That Offer Both Growth and Safety With the global landscape marked by escalating geopolitical risks and unpredictable economic shifts, the current environment remains highly volatile. In such times, investing in resilient blue-chip stocks, Apple Inc (AAPL),...
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With the global landscape marked by escalating geopolitical risks and unpredictable economic shifts, the current environment remains highly volatile. In such times, investing in resilient blue-chip stocks, Apple Inc (AAPL), Microsoft Corporation (MSFT), and Berkshire Hathaway (BRK-B) could provide both growth potential and a buffer against market uncertainty. Read on….
Amid rising geopolitical tensions, economic uncertainties, and market fluctuations, the current environment is highly volatile. Thus, one could invest in blue-chip stocks, Apple Inc. (AAPL), Microsoft Corporation (MSFT), and Berkshire Hathaway Inc. (BRK-B), that are well-positioned to offer growth and safety against market uncertainty.
Against all expectations set by the mainstream media, Donald Trump has triumphed in the presidential race. He secured the necessary 270 electoral votes, defying predictions and making an unexpected return to the White House. His victory holds vast implications for global trade, climate change, and ongoing international crises.
Trump’s assertion that the global geopolitical crisis has deepened since his time in office is valid. The toll of conflicts such as the war between the United States, Ukraine, and Russia, and the complex dynamics between the United States, Israel, and Iran, has escalated.
Additionally, tensions within Iran’s "axis of resistance" and rising military confrontations in regions like North and South Korea, and China and Taiwan, further contribute to this volatile landscape.
One of Trump’s key strategies is a renewed tariff dispute with China, America’s growing economic adversary. Meanwhile, in the Middle East, he promises to resolve conflicts involving Israel, Hamas, and Hezbollah, though the specifics of his approach remain unclear.
Moreover, Trump vowed to end the Russia-Ukraine war within 24 hours of taking office, an outcome that could potentially favor Moscow, a concern for Ukraine and its allies.
Amid these uncertainties, investors could turn toward blue-chip stocks as a safe haven. These stocks would show resilience during times of uncertainty, offering stability and reliable returns. Their dominant market positions, broad presence, and consistent income streams make them an ideal investment choice in unpredictable economic climates.
So, let's take a closer look at the fundamentals of three blue-chip stocks, beginning with #3.
Stock #3: Apple Inc. (AAPL)
AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The company’s offerings include iPhones, Macs, iPads, AirPods, Apple Watch, Apple TV and more. It also provides DarwinAI, which specializes in visual quality inspection through its Explainable AI platform.
On October 30, AAPL announced the launch of M4 Pro and M4 Max, two new chips that bring more power-efficient performance and advanced capabilities to the Mac. In the age of tech advancements, AAPL’s new launches would help the company strengthen its position as an industry giant and enhance its growth prospects further.
On October 29, AAPL announced the unveiling of the Mac mini powered by the M4 and new M4 Pro chips, which were redesigned around Apple silicon to deliver an incredible performance, just being 5 by 5 inches.
The cutting-edge mini computer could attract tech-savvy consumers and solidify AAPL’s reputation for superior performance and innovation, driving significant market share and growth opportunities for the company.
For the fiscal fourth quarter that ended on September 30, 2024, AAPL’s total net sales increased 6.1% year-over-year to $94.93 billion. Its gross margin grew 8.5% from the year-ago value to $43.88 billion. Additionally, the company’s operating income rose 9.7% from the prior year’s quarter to $29.59 billion.
As of September 28, 2024, AAPL’s total current assets amounted to $152.99 billion, compared to $143.57 billion on September 30, 2023.
Analysts expect AAPL’s revenue and EPS for the fiscal 2025 first quarter (ending December 2024) to increase 4% and 7.9% year-over-year to $124.40 billion and $2.35, respectively. Moreover, the company topped the consensus revenue and EPS estimates in all four trailing quarters, which is noteworthy.
Shares of AAPL have surged 24.6% over the past six months and 25% over the past year to close the last trading session at $227.23.
AAPL’s POWR Ratings mirror its fundamentals. It has an A grade for Quality. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
AAPL is ranked #24 out of 40 stocks in the Technology – Hardware industry.
In addition to the POWR Ratings we’ve stated above, we also have AAPL ratings for Growth, Value, Sentiment, Stability, and Momentum. Get all AAPL ratings here.
Stock #2: Microsoft Corporation (MSFT)
MSFT is a technology company that develops and supports software, services, devices, and solutions. It operates through three segments: Productivity and Business Processes; Intelligent Cloud; and More Personal Computing. The company’s offerings include Office, Microsoft Teams, LinkedIn, and more.
On October 10, MSFT unveiled several Microsoft Cloud for Healthcare innovations that connect care experiences, enhance team collaboration, empower healthcare workers, and enable clinical and operational insights. As digital health rises, these advancements position MSFT for strong market leadership and drive growth.
On October 3, MSFT announced a strategic partnership with Rezolve AI (RZLV), a global leader in AI-driven commerce solutions, to equip retailers with enhanced digital engagement tools. Through Microsoft Cloud-powered AI, the collaboration aims to transform customer engagement and operations, reinforcing MSFT's position in the AI industry.
For the fiscal 2025 first quarter that ended on September 30, 2024, MSFT’s total revenue increased 16% year-over-year to $65.59 billion. Its operating income grew 13.6% from the year-ago value to $30.55 billion. Moreover, the company’s net income and EPS rose 10.7% and 10.4% from the prior year’s quarter to $24.67 billion and $3.30, respectively.
Street expects MSFT’s revenue and EPS for the fiscal 2025 second quarter (ending December 2024) to increase 11.1% and 7.8% year-over-year to $68.92 billion and $3.16, respectively. Moreover, the company surpassed the consensus revenue and EPS estimates in each of the four trailing quarters.
MSFT’s shares have gained 3.9% over the past six months and 18% over the past year, closing the last trading session at $425.43.
MSFT’s fundamentals are projected in its POWR Ratings. It has a B grade for Stability and Quality.
MSFT is ranked #18 out of 39 stocks in the Software – Business industry.
Click here to access MSFT’s ratings for Growth, Momentum, Sentiment, and Value.
Stock #1: Berkshire Hathaway Inc. (BRK-B)
BRK-B engages in the insurance, freight rail transportation, and utility businesses globally. The company has a diverse set of offerings, ranging from property, casualty, life, accident, and health insurance and reinsurance, generation and distribution of electricity to distribution of natural gas and many more.
On January 16, BRK-K announced the acquisition of Pilot Travel Centers LLC. This move positions BRK-B to capitalize on the expanding travel industry, strengthening its potential for further growth.
For the fiscal 2024 third quarter that ended on September 30, BRK-B’s total revenues came in at $93 billion. Net earnings attributable to BRK-B and net earnings per average equivalent Class B share were reported to be $26.25 billion and $12.18, compared to a net loss and loss per share of $12.77 billion and $5.88 in the prior year’s quarter, respectively.
As of September 30, 2024, BRK-B’s total assets stood at $1.15 billion, compared to $1.07 billion on December 31, 2023.
The consensus revenue and EPS estimates of $371.91 billion and $19.45 for the fiscal year ending December 2024 reflect a rise of 2% and 13.2% year-over-year, respectively. Also, the company surpassed the consensus revenue estimates in all four trailing quarters.
BRK-B’s shares have gained 13.3% over the past six months and 32.9% over the past year, closing the last trading session at $460.13.
BRK-B’s solid prospects are projected in its POWR Ratings. It has an A grade in Stability and Momentum.
BRK-B is ranked #48 out of 55 stocks in the A-rated Insurance - Property & Casualty industry.
Click here to access BRK-B’s ratings for Quality, Sentiment, Value, and Growth.
What To Do Next?
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AAPL shares rose $0.37 (+0.16%) in premarket trading Friday. Year-to-date, AAPL has gained 18.60%, versus a 26.49% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal Sugandh
Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.
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