We recently released a list 10 Most Profitable Blue Chip Stocks Buy Now. In this article, we will explore Amazon.com, Inc. (NASDAQ:AMZN) Buy now the position of other most profitable blue chip stocks.
Blue Chip Stock is a large, financially stable company with strong market operations, consistent profitability and regular dividend payments. They are often market leaders with strong business models and they are resilient throughout the business cycle. The DOW index (DJIA) includes many blue chip stocks, so this index is often considered an indicator of its overall performance. Investors often flock to blue chip stocks when markets are volatile, economic uncertainty or the economy is in late stage expansion, because these large companies tend to provide stable and consistent returns, with smaller or greater risks or greater risks.
We believe that Blue Chip stocks, especially the components of the Dow Jones Index, represent a unique blend of value and scale factors, combining financial stability, earnings consistency, and attractive market valuations often associated with value stocks, as well as the size and market advantages of large companies. This double exposure strengthens their resilience in the downturn and makes it perform well during recession when investors tend to turn to quality and safer stocks. For reference, the FAMA-FRENCH three-factor model introduced in 1993 concluded that contact with several favorable factors could further improve stock returns. In this case, both the value and large size factors have exceeded in the past few years, especially since the beginning of the year.
Please read also: 10 Most Profitable Large Stocks Buy Now
Our research suggests that fear of the recession and Trump’s turmoil may persist and that it is possible to continue to favor the most profitable blue chip stocks over everything else. The U.S. government appears to be eroding investor trust through too many unpredictable and contradictory actions - Trump appears to be eased to ease his position on the U.S.-China trade war, saying tariffs on Chinese goods "will not be as high as 145%" and "in essence, it will not be reduced, but it will not be reduced." Although this may seem a good sign at first glance, such actions are likely to prevent U.S. partners from negotiating tax exemptions simply because the current government has become too unpredictable.
Compared to the long-term trend, the VIX volatility index remains high, while crude oil prices remain on a downward trend, suggesting that our ideas remain with the expectation of weaker industrial demand and weaker economy. On the consumer side, it is reasonable to believe that American consumers are becoming more cautious than ever before - employees exited the Fred reported tax rates, which dropped significantly, comparable to the consequences of the 2008 financial crisis. When employees are reluctant to quit, this means two things: (1) it is difficult to find a job, which means the economy is slowing down, and (2) their expectations for the future become more pessimistic, which leads to a lower willingness to quit and potentially difficult to find a new job. Both factors mean that consumer spending may slow down in the coming quarters, further forcing GDP growth.
The key point for readers is that the chances of recession and long bear markets remain. In this case, the best hedging strategy is to hold stocks of companies that perform well in the bull market, but at the same time protect turmoil and recession. Our belief is that the most profitable blue chip stocks are the best candidates because they have a wide moat and strong cash flow that can withstand any economic slowdown and even potentially absorb incremental tariffs.
Customers entering the Internet retail store illustrate the convenience of online shopping.
To compile a list of the most profitable blue chip stocks we have purchased now, we screened current and former members of the Dow Jones Industrial Average and identified the most recent report of the most net income companies for the fiscal year. From this group, we selected the companies with the highest net profit margins, which demonstrates reasonable financial position and excellent cost management. As of the most recent quarter, these stocks were ranked in order of rising net profit margins. According to Insider Monkey's database, for each stock, we also include the number of hedge funds that own the stock.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Net profit margin: 9.29%
Net income last year: $30.43 billion
Number of hedge fund holders: 339
Amazon.com, Inc. (NASDAQ:AMZN) is a global technology company that operates a large e-commerce platform with the same name through Amazon Web Services (AWS), digital streaming and artificial intelligence. AWS has become a major pillar of growth by providing cloud solutions to enterprises and governments and leveraging AI powers. Through strategic acquisitions, AMZN has been expanding in adjacent niche markets such as entertainment, healthcare and logistics.
Amazon.com, Inc. (NASDAQ:AMZN) reported economic performance in 2024, with revenue up 10% and operating income up $21.2 billion, or about 61% of age. The company's North American segment grew 10%, while the international segment saw a 9% growth rate, excluding foreign exchange impact, both segments marked their eighth consecutive quarterly Yoy margin increase. AWS continued to grow by 19% and continued to perform well, reaching an annual revenue run rate of $115 billion.
Amazon.com, Inc. (NASDAQ:AMZN) has made significant progress in operational efficiency, reducing global costs, serving per unit for the second consecutive year, while increasing delivery speeds and expanding options. AMZN's commitment to AI innovation is evident, with approximately 1,000 different generative AI applications built or developed across retail, AWS and other business areas. Looking ahead to 2025, management plans to continue investing in AI capabilities, delivering facilities and robotic automation on the same day to increase delivery speeds and reduce service costs. The company's net revenue exceeded $30 billion in fiscal 2024, ranking eighth on our list of most profitable stocks to buy.
Overall, AMZN Ranked eighth On our list of the most profitable blue chip stocks to buy in stock now. Although we acknowledge the potential of AMZN as an investment, our belief is that AI stocks have higher returns in a shorter time frame and offer greater hope in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than AMZN but have less than 5 times its earnings, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Internal monkey.