7 Elite Blue-Chip Stocks Predicted to Double Your Fortune by 2028 – InvestorPlace
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While searching for investment, there is a search for the holy grail. These are the stocks that have the potential to multiply returns exponentially. Here is a selected group of seven blue-chip stocks, each with a trajectory to double investment by 2028.
These are robust, time-tested giants dominating their respective industries. These titans are shaping digital tech to the pharmaceutical powerhouses driving medical advancement. As a result, these stocks are pillars of growth and stability in the lucid market.
The first one has an expansive user base, and the second one dominates the digital payment ecosystem. Similarly, the third leads to high-growth markets, and the fourth is resilient against industry fluctuations.
Each one stops on revelations that will illuminate the fundamentals of wealth creation. At their core, these companies represent the epitome of the operational edge, harnessing cutting-edge technology, strategic partnerships, and decisive leads to breed astronomical growth.
Read more to learn the fundamentals behind these companies and their potential for high returns.
Meta (NASDAQ:META) has a solid user base expansion that serves as fundamental support for its growth momentum. Notably, the Family Daily Active People (DAP) average for December 2023 was 3.19 billion, marking an 8% increase year-over-year (YoY). Similarly, Family Monthly Active People (MAP), as of December 2023, hit 3.98 billion, reflecting a 6% YoY boost.
Fundamentally, the steady growth in both DAP and MAP indicates Meta’s lead in retaining existing users while attracting new ones. This prolonged user engagement is the basis for Meta’s business model. Hence, this boosts the edge of its advertising platform and solidifies its ecosystem. This makes t one of those blue-chip stocks.
Beyond the consolidated user base, Meta can sustain user engagement across its platforms, particularly on Facebook. This reinforces its status as a leading social media conglomerate. Facebook has an average of 2.11 billion DAUs for December 2023, representing a 6% increase YoY. Similarly, Facebook MAUs hit 3.07 billion as of December 2023, reflecting a 3% YoY boost.
Overall, despite being a mature platform, Facebook continues to attract new users and retain existing ones. Meta is sharp at fostering user engagement, essential for maximizing ad revenue and monetizing leads.
PayPal’s (NASDAQ:PYPL) top-line growth and margin expansion represent the fundamental capability to monetize its operations sharply. Net revenues increased 9% in Q4 and 8% in 2023, indicating prolonged top-line growth. Meanwhile, the expansion of GAAP and non-GAAP operating margins reflects PayPal’s progress in managing costs and improving operational edge. These trends mark high financial performance and suggest PayPal’s solid foundation for growth.
Similarly, total payment volume (TPV) increased by 15% in Q4. Similarly, the growth was 13% for 2023 to hit $1.53 trillion. Payment transactions grew by 13% in Q4, from 12% in 2023 (to 25.0 billion). The transaction volume growth highlights PayPal’s fundamental capability to attract more users and facilitate a higher volume of transactions through its platform. Thus, the double-digit percentage increases in TPV and payment transactions indicate solid user engagement and adoption of PayPal’s services. It’s therefore one of those blue-chip stocks to consider.
Overall, these trends reflect PayPal’s increasing relevance in the digital payment ecosystem and its growing valuation potency based on its edge as a preferred choice for consumers and businesses.
Intel (NASDAQ:INTC) ‘s Q4 top-line is $15.4 billion, a considerable 10% increase YoY. The Q4 top-line growth indicates positive momentum for Intel, likely based on solid product offerings and market demand.
Additionally, Intel Foundry Services (IFS) targets being the second-largest external foundry by 2030. It has strategic agreements with over 40 partners across various domains, including Electronic Design Automation (EDA) services, IP, and cloud services. Similarly, agreements with companies like ARM (NASDAQ:ARM) and Synopsys (NASDAQ:SNPS) broaden the foundry ecosystem.
Expansion into high-growth markets like mobile, communication infrastructure, and networking through collaborations and developments. Intel focuses on expanding its foundry business through strategic agreements and collaborations. This indicates an inclination toward diversifying revenue streams and capitalizing on growing semiconductor demand.
Overall, emphasizing high-growth markets further solidifies Intel’s lead in the foundry business.
TSMC (NYSE:TSM) has established itself as a leader in advanced process technologies, a vital aspect of its growth strategy. The company focuses on cutting-edge nodes such as 3-nanometer (N3), 5-nanometer (N5), and 7-nanometer (N7). Hence, this fab focus may add considerably to its competitive edge.
In Q4 2023, shipments of 3-nanometer technology held 15% of total wafer revenue. Meanwhile, 5-nanometer and 7-nanometer techs led 35% and 17% of the revenue, respectively. Collectively, advanced technologies (7-nanometer and below) represented 67% of the revenue. This suggests TSMC’s solid traction in commercializing the advanced semiconductor nodes.
For 2023, the contribution of advanced techs to wafer revenue boosted to 58% (in 2023) from 53% (in 2022). This upward trend signifies TSMC’s focus on advancing its process tech. This aligns with industry demands and fosters growth. TSMC’s top-line diversification across platforms leads to higher valuation growth potential. The company caters to multiple sectors and verticals, including high-performance computing (HPC), smartphones, the Internet of Things (IoT), automotive, and data center enterprise (DCE).
For instance, in Q4 2023, HPC and smartphone segments each accounted for 43% of revenue, followed by IoT (5%), automotive (5%), and DCE (2%). Despite fluctuations, TSMC maintains a balanced revenue distribution. Therefore, this minimizes the risks associated with dependency on a single sector. It’s also one of those blue-chip stocks to buy.
Pfizer’s (NYSE:PFE) solid revenues for 2023 hit $58.5 billion. Despite the decline in COVID revenues and excluding Comirnaty and Paxlovid, the company delivered an operational top-line growth of 7% YoY. This growth suggests that Pfizer’s other products can offset the decline in COVID-19 product revenues.
Additionally, Pfizer had a record year with nine new molecular entity approvals and approvals for new indications. Furthermore, completing the Seagen (NASDAQ:SGEN) acquisition boosted (doubled) its oncology resources and efforts, placing Pfizer as a leader in various cancer treatments. There is continued investment in research across therapeutic areas outside of oncology. These include vaccines, anti-infectives, internal medicine, metabolic diseases, inflammation, and immunology.
Finally, Pfizer returned $9.2 billion to shareholders via dividends and invested $10.7 billion in internal R&D in 2023. It also invested approximately $44 billion in completed business development transactions, primarily the Seagen acquisition, demonstrating strategic investment in growth leads. Hence, this strategic allocation may support solid valuation boosts in the upcoming quarters.
Warner Bros. Discovery (NASDAQ:WBD) derived considerable free cash flow, which hit $6.2 billion in 2023. The company also repaid $5.4 billion in debt, reducing its net leverage to 3.9 times EBITDA. Fundamentally, this solid FCF generation and debt reduction signify the company’s discipline and capability to manage its capital structure sharply.
Additionally, the Direct-to-Consumer (D2C) segment saw impressive growth, with global subscribers reaching nearly 98 million by the end of Q4 2023. Despite some domestic declines, international subscriber growth remained solid, with over 1 million subscribers gained in Q4 alone. D2C advertising revenue accelerated considerably. This is increasing by over 50% in Q4, driven by higher engagement on Max and ad-lite subscriber growth. In short, these metrics indicate Warner Bros Discovery’s progressive penetration into the streaming market and its fundamental capability to monetize its streaming platform sharply. All in all, it’s one of those blue-chip stocks.
Despite challenges such as strikes impacting content production, Warner Bros Discovery continued to invest in content creation, as evidenced by its focus on relaunching its theatrical animation division and producing original programming. Finally, strategic partnerships, such as the deal with A24 to bring theatrical releases exclusively to Max, further enrich the company’s content offering and competitiveness.
Verizon’s (NYSE:VZ) wireless service revenue for 2023 stood at $76.7 billion, reflecting a 3.2% YoY increase. This growth indicates Verizon’s solid position in the wireless market, derived from leveraging its network infrastructure and client-centric offerings to drive revenue expansion. The constant YoY growth demonstrates Verizon’s capability to capture market share and adapt to consumer demands.
Towards the bottom line, Verizon attained an adjusted EBITDA of $47.8 billion in 2023, leading to a solid FCF of $18.7 billion. Verizon has a disciplined and strategic approach to profitable growth, focusing on its operational edge and financial standing. Additionally, Verizon’s fundamental capability to raise its dividend for the 17th consecutive year and an adequate FCF dividend payout ratio of approximately 59% reflects its focus on valuation expansion.
Furthermore, Verizon experienced considerable net-added growth. In mobility, Verizon added 449K postpaid phone net adds in Q4 2023, based on the boosted performance in both consumer and Verizon business segments. Additionally, Verizon Business attained its 10th consecutive quarter of postpaid phone net adds above 125K. Hence, this is a reflection of solid client demand and satisfaction. In broadband, Verizon attained over 1.7 million net adds for 2023, with fixed wireless access leading considerably to the growth momentum. This makes it one of those blue-chip stocks to buy.
As of this writing, Yiannis Zourmpanos held long positions in META, PYPL, INTC, TSM, PFE, WBD, and VZ. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
Artificial Intelligence, Communications, Financial, Fintech, Healthcare, Media, Semiconductor, Social Media, Software, Streaming, Technology
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Article printed from InvestorPlace Media, https://investorplace.com/2024/03/7-elite-blue-chip-stocks-predicted-to-double-your-fortune-by-2028/.
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