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, diversified S&P 500 exchange-traded fund (ETF), such as the SPDR S&P 500 ETF Trust (ticker: SPY), is a relatively low-risk place to start. However, 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 analyst team:
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’s opportunities to integrate artificial intelligence (AI) features into its devices could be a major growth catalyst. In addition, he says the company has a massive global customer base and an improving margin profile. Zino says Apple’s aggressive capital return program and stable free cash flow generation make it an attractive long-term investment. CFRA has a “buy” rating and $260 price target for AAPL stock, which closed at $229.04 on Oct. 10.
Microsoft Corp. (MSFT)
Microsoft is the world’s largest software company, best known for its Windows, Office and Azure cloud services. Zino says Microsoft is benefiting from AI technology and infrastructure investment throughout its product portfolio, including Microsoft Copilot and other AI applications, as well as Azure AI and other AI development services. Many of these AI applications have already been deployed, but Zino says Microsoft has countless ways to monetize generative AI, and investors can expect Microsoft to continue to roll out additional AI apps, features and updates. CFRA has a “strong buy” rating and $490 price target for MSFT stock, which closed at $415.84 on Oct. 10.
Nvidia Corp. (NVDA)
Nvidia designs and sells high-end graphics and video processing chips used for desktop and gaming 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, it was the best-performing stock in the S&P 500 in 2023 and has been the second-best performing stock in the S&P 500 in 2024. Zino says software opportunities and content gains from higher system sales will expand Nvidia’s total addressable market. CFRA has a “buy” rating and $139 price target for NVDA stock, which closed at $134.81 on Oct. 10.
Alphabet Inc. (GOOG, GOOGL)
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 can generate at least 10% revenue growth through 2025. He says the stock is attractively valued given Alphabet’s free cash flow potential. Zino says the integration of AI technology into Alphabet’s advertising business will improve targeting, ad creation, bidding and performance measurement. In addition, he says AI monetization will fuel at least 25% annual cloud revenue growth for Alphabet through 2025. CFRA has a “buy” rating and $220 price target for GOOGL stock, which closed at $162.08 on Oct.10.
Amazon.com Inc. (AMZN)
Amazon is the market leader in e-commerce and public cloud services. Analyst Arun Sundaram says Amazon is positioned to generate significant profit and free cash flow growth in the next several years. Sundaram says Amazon also has opportunities to improve efficiencies in areas such as automation, emerging market profitability, supply chain operations, Prime Video and Amazon Web Services (AWS). Strong growth in AWS, advertising and third-party fulfillment will also likely boost overall profit margins. In addition, Sundaram says AI technology and machine learning can potentially unlock new growth opportunities for Amazon. CFRA has a “buy” rating and $225 price target for AMZN stock, which closed at $186.65 on Oct. 10.
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 has an attractive valuation and significant long-term growth opportunities. He projects at least $50 billion in free cash flow for Meta in 2025 and at least 10% annual earnings per share growth. Zino says AI technology integration and healthy digital advertising trends will drive additional upside for Meta’s stock. AI technology is already having a positive impact on Meta’s app engagement metrics. CFRA has a “buy” rating and $600 price target for META stock, which closed at $583.83 on Oct. 10.
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’s market share gains will likely slow, but late-stage therapies for sleep apnea, kidney function and cardiology drug candidate Tirzepatide make him optimistic about the future. Hardy says Eli Lilly’s efforts to improve Tirzepatide supply should have a positive impact on sales. The recent approval of Lilly’s early symptomatic Alzheimer’s disease drug Kisunla is also a major bullish development. CFRA has a “buy” rating and $1,085 price target for LLY stock, which closed at $910.69 on Oct. 10.
Broadcom Inc. (AVGO)
Broadcom is a diversified global analog semiconductor supplier. Zino says Broadcom’s application-specific integrated circuit, networking and switcher businesses will generate a combined $12 billion in sales in fiscal 2024 and will be a major beneficiary of the global boom in AI infrastructure investment. He says Broadcom will also benefit from cost synergies tied to its integration of VMware assets, which is progressing ahead of schedule. Finally, Zino says Broadcom’s long-term chip supply deal with Apple and its opportunities in AI give the company excellent financial visibility. CFRA has a “buy” rating and $185 price target for AVGO stock, which closed at $185.69.