Back to top

Image: Bigstock

Buy 5 Blue-Chip Stocks to Enhance Your Portfolio Returns in 2026

Read MoreHide Full Article

Key Takeaways

  • Cisco targets $9B in AI infrastructure orders for fiscal 2026 amid strong product demand.
  • CRM is expanding generative AI offerings and boosting AI investments across Europe.
  • Visa and Chevron are advancing digital payments and energy growth through AI and expansion plans.

On May 14, the Dow Index reclaimed the crucial technical barrier of 50,000. The blue-chip closed above the mark for the first time since Feb. 11. Although the 30-stock index fell a little from 50,000 in the next two trading days, it is up 2.3% year to date.

Dow’s momentum is likely to continue in the near term. Technically, at its current level of 49,686.12, the Dow is well above its 50-day and 200-day moving averages of 48,032.58 and 47,485.52, respectively. 

Historically, it has been noticed in the technical analysis space that whenever the 50-day moving average line surges above the 200-day moving average line, a long-term uptrend for the asset (in this case, the Dow Index) becomes a strong possibility.

At this stage, it will be prudent to invest in blue-chip stocks with a favorable Zacks Rank. Five such stocks are: Cisco Systems Inc. (CSCO - Free Report) , Salesforce Inc. (CRM - Free Report) , Apple Inc. (AAPL - Free Report) , Visa Inc. (V - Free Report) and Chevron Corp. (CVX - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our five picks in the past month.

Zacks Investment Research
Image Source: Zacks Investment Research

Cisco Systems Inc.

Cisco Systems has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In the last reported quarter, CSCO generated record-high revenues primarily due to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems.

CSCO expects total AI infrastructure orders to reach $9 billion in fiscal 2026, an increase of 4.5X from fiscal 2025. Overall product orders grew by a sizable 35% year over year in the third quarter. Of this, data center switching orders grew 40% from the year-ago period, supported by massive AI-powered data center buildout. 

Cisco has decided to retrench 4,000 manpower as part of a sweeping restructuring effort. Management said that this restructuring has been guided to give more emphasis to areas like AI networking infrastructure, network security, silicon and optics. 

Cisco Systems has an expected revenue and earnings growth rate of 9.8% and 9.7%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% over the last seven days. 

Salesforce Inc.

Salesforce is continuously expanding its generative AI offerings. Generative AI is a type of AI technology that can produce various types of content, including text, imagery, audio and synthetic data. It is driven by a large language model, which means it uses a lot of data to understand and generate conversations. 

CRM forayed into the generative AI space with the launch of Einstein GPT in March 2023. Since then, the company has been investing in its generative AI capabilities through its venture capital fund. 

These investments serve as a strategic engine for the company to maintain its competitive position in the enterprise software space while navigating the AI platform shift. The fund, managed by Salesforce Ventures, benefits the company by fostering an ecosystem of trusted AI partners, accelerating product innovation, and driving financial returns.

CRM has significantly ramped up its investments in Europe, focusing heavily on AI infrastructure, R&D, and local partnerships, with the United Kingdom serving as its primary AI hub for the region. 

Salesforce has an expected revenue and earnings growth rate of 10.9% and 5%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.1% over the last 90 days. 

Apple Inc.

Apple’s last earnings report showed demand for the iPhone 17 lineup and record Services revenues, supported by a growing installed base across major categories. AAPL expects June quarter revenue growth in the mid-teens, with Services rising at a similar pace after adjusting for foreign exchange. 

New products such as iPhone 17e and MacBook Neo, plus Apple Business, can expand ecosystem engagement over time. Apple Pay remains a key part of the Services flywheel as more customers use Apple’s transacting products. 

Management highlighted that Tap to Pay is now available in over 50 markets, expanding Apple’s reach with merchants and small businesses. The continued shift toward digital payments supports recurring engagement in the ecosystem, which can help sustain Services' growth as AAPL adds features and broadens geographic availability.

Apple has an expected revenue and earnings growth rate of 14.8% and 17.2%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 2.9% over the last 30 days. 

Visa Inc.

Visa continues to benefit from growing transaction volume. V’s scale and brand keep it at the center of global digital payments, with growth still led by higher volumes, cross-border activity and rising transactions. V witnessed broad momentum across consumer payments, commercial and money movement solutions, and value-added services. 

Visa has also moved quickly into agentic commerce. In April 2026, V unveiled Intelligent Commerce Connect, an ‘on ramp’ that lets businesses connect AI agents to payments and acceptance through a single integration. 

V is also expanding its Agentic Ready testing program from Europe into Asia Pacific and Latin America to validate enrollment, tokenization, authentication and authorization flows before broader rollout. Investments in agentic commerce and stablecoin settlement, alongside targeted acquisitions and disciplined capital returns, should continue to extend its network value over time.

Visa has an expected revenue and earnings growth rate of 13.4% and 14.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% over the last seven days. 

Chevron Corp.

Zacks Rank #1 Chevron has emerged as a strong beneficiary of higher oil prices, supported by its upstream leverage and expanding production base following the Hess acquisition. The deal adds high-quality assets in Guyana, the Bakken and the Gulf of America, strengthening long-term output and free cash flow growth. Management reaffirmed production growth guidance of 7-10% while maintaining disciplined capital spending, highlighting operational efficiency and financial strength. 

CVX also benefits from its integrated refining system, growing LNG exposure through long-term contracts, and strong production momentum at Tengizchevroil. In addition, CVX’s partnership initiatives tied to AI-driven power demand create new long-term growth opportunities.

Chevron has an expected revenue and earnings growth rate of 15.7% and 111.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.7% over the last seven days.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in