If you have an extra $1,000 sitting in a savings or checking account, one of the best ways to earn a return on that money is to invest in the stock market. If you’re new to investing, buying a low-cost, S&P 500 exchange-traded fund, such as the SPDR S&P 500 ETF Trust (ticker: SPY), is a relatively low-risk place to start.
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But if you’d rather begin building your own stock portfolio from scratch, here are eight of the best blue-chip stocks to buy with $1,000 that have “buy” ratings from the CFRA Research analyst team:
| Stock | Implied upside from Jan. 5 close |
| Apple Inc. (AAPL) | 15.9% |
| Microsoft Corp. (MSFT) | 14.2% |
| Alphabet Inc. (GOOG, GOOGL) | 15.7% |
| Amazon.com Inc. (AMZN) | 23.9% |
| Nvidia Corp. (NVDA) | 22.2% |
| Meta Platforms Inc. (META) | 10.8% |
| Tesla Inc. (TSLA) | 26.3% |
| Eli Lilly and Co. (LLY) | 7.5% |
Apple Inc. (AAPL)
Apple produces the iPhone, iPad, Apple Watch, Mac computers and other personal computing devices. In addition, its services segment includes its App Store, Apple Music, iCloud and licensing businesses. Analyst Angelo Zino says Apple has a large, loyal customer base, generates stable free cash flows and has an aggressive capital return program that creates value for investors. Zino says Apple also has a strong management team and pricing leverage that could boost profitability in coming years. Apple also has growth opportunities in spatial computing and health care. CFRA has a “buy” rating and $210 price target for AAPL stock, which closed at $181.18 on Jan. 5.
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company and is best known for Windows, Office and Azure cloud services. Zino says the cloud-based versions of Microsoft’s Office, Teams and Dynamics products are gaining traction among users, and artificial intelligence technology creates significant long-term growth opportunities for the company. Cloud-based revenue now makes up about two-thirds of the company’s total sales, and Zino says generative AI services will likely help Microsoft far exceed consensus earnings estimates moving forward. He projects 14% revenue growth in fiscal 2024. CFRA has a “strong buy” rating and $420 price target for MSFT stock, which closed at $367.75 on Jan. 5.
Alphabet is one of the world’s largest online search and advertising companies and is the parent company of Google and YouTube. Zino says Alphabet has tremendous free cash flow and earnings potential, and he projects between 6% and 11% annual revenue growth for Alphabet through at least 2025. He says Alphabet can leverage AI technology to create opportunities in cloud services, search and YouTube. Meanwhile, Alphabet is dialing back losses in its “other bets” segment, and Zino says YouTube revenue growth may accelerate heading into 2024. CFRA has a “buy” rating and $157 price target for GOOGL stock, which closed at $135.73 on Jan. 5.
Amazon.com Inc. (AMZN)
Amazon is the market leader in e-commerce and public cloud services. Analyst Arun Sundaram says Amazon has become a highly profitable free-cash-flow machine, and the company still has several major ways to unlock additional efficiencies, such as expansion in emerging markets and integration of robotics and other automation technology. Sundaram says Amazon can also further enhance Prime Video and increasingly leverage its high-margin Amazon Web Services business, which is already growing at an impressive clip. He says Wall Street analysts are significantly underestimating Amazon’s long-term earnings potential. CFRA has a “buy” rating and $180 price target for AMZN stock, which closed at $145.24 on Jan. 5.
[READ: 10 of the Best Stocks to Buy for 2024]
Nvidia Corp. (NVDA)
Nvidia designs and sells high-end graphics and video processing chips used for personal computers, workstations, and other advanced computing servers and supercomputers. Not only is Nvidia one of the best-performing stocks in the entire market in the past 15 years, its 239% total return in 2023 made Nvidia the best-performing stock in the entire S&P 500 last year. Zino says Nvidia will be one of the biggest winners from the AI technology investment boom and sees additional growth opportunities in software and services. CFRA has a “buy” rating and $600 price target for NVDA stock, which closed at $490.97 on Jan. 5.
Meta Platforms Inc. (META)
Meta Platforms is a market leader in social media and online advertising and is the owner of Facebook, Instagram and other platforms. Zino says Meta’s margins are improving, the stock has an attractive valuation and the company has several opportunities to enhance and improve its world-class platforms. He projects Meta will generate at least $40 billion in free cash flow in 2024 that could support more aggressive buybacks. Zino says Reels, click-to-message ads, AI technology and metaverse initiates will also serve as growth catalysts for Meta. CFRA has a “buy” rating and $390 price target for META stock, which closed at $351.95 on Jan. 5.
Tesla Inc. (TSLA)
Tesla is the leading U.S. electric vehicle manufacturer. Analyst Garrett Nelson says the rollout of the Cybertruck and new factories in Texas and Germany have set the stage for the next growth phase for Tesla in 2024 and beyond. He estimates Tesla has more than 2 million Cybertruck reservations. In addition, Nelson says Tesla is the biggest winner from 2022’s Inflation Reduction Act EV subsidies. In the longer term, Nelson says the Roadster and the next-generation platform will be additional growth catalysts. CFRA has a “buy” rating and $300 price target for TSLA stock, which closed at $237.49 on Jan. 5.
Eli Lilly and Co. (LLY)
Eli Lilly produces brand-name prescription drugs to treat a wide range of medical conditions, including diabetes, cancer and neurological disorders. Analyst Sel Hardy says Eli Lilly has several key catalysts ahead, including late-stage therapies such as donanemab for Alzheimer’s disease, pirtobrutinib for leukemia and lymphoma, and tirzepatide for obesity and cardiology. In addition, sales of antidiabetic drug Mounjaro exceeded expectations in the third quarter. Mounjaro and Eli Lilly’s nine other key commercial drugs represent a combined 70% of the company’s total revenue, providing diversification and stability. CFRA has a “buy” rating and $665 price target for LLY stock, which closed at $618.55 on Jan. 5.
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8 Best Stocks to Buy Now With $1,000 originally appeared on usnews.com
Update 01/08/24: This story was previously published at an earlier date and has been updated with new information.
