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There are many different styles of investing out there. Some investors prefer to park their hard-earned cash in income-generating assets, some target value, and some target specific industries, to give a few examples.
Of course, there’s also the group of investors that have a preference for small-cap stocks, which can be seen as a less-conservative approach.
Small-caps typically have impressive growth trajectories, as these companies are in their early phases. Still, these stocks’ price swings can sometimes become spooky, causing investors to look elsewhere.
That’s precisely where large-cap stocks come in.
Three large-cap stocks – Splunk , Royal Caribbean Cruises (RCL - Free Report) , and MercadoLibre Inc. (MELI - Free Report) – all carry firm growth profiles, with earnings estimates drifting higher.
Below is a chart illustrating the performance of all three stocks over the last three months, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
For those who want to target established companies with solid growth trajectories, let’s take a closer look at each one.
MercadoLibre Inc.
MercadoLibre Inc. is one of the largest e-commerce platforms in Latin America, offering a total of six integrated e-commerce services. Currently, the company is a Zacks Rank #1 (Strong Buy).
Investors will undoubtedly appreciate MELI’s earnings estimates; the Zacks Consensus EPS Estimate of $8.20 for its current fiscal year indicates a substantial 390% Y/Y uptick in earnings.
And in FY23, estimates suggest a further 80% of earnings growth.
Image Source: Zacks Investment Research
MercadoLibre has recently impressed with its quarterly results, exceeding both earnings and revenue expectations in back-to-back releases. In its latest print, MELI penciled in an 11% earnings beat and reported revenue marginally above expectations.
Image Source: Zacks Investment Research
Splunk Inc.
Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. Currently, the company boasts a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
A strong partner base paired with high demand for cloud solutions has the company on a bright path, with earnings forecasted to soar more than 240% in its current fiscal year (FY23) and a further 40% in FY24.
Image Source: Zacks Investment Research
In addition, Splunk’s upcoming quarter is shaping up to be strong; the Zacks Consensus EPS Estimate of $1.10 indicates an improvement of more than 65% Y/Y.
Our consensus revenue estimate stands at $1.1 billion, suggesting an uptick of nearly 20% from year-ago quarterly sales of $901 million.
Image Source: Zacks Investment Research
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company that owns and operates three global brands: Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises. Presently, RCL is a Zacks Rank #2 (Buy).
The company’s shares have gotten off to a fantastic start in 2023, up more than 20% and leaving the S&P 500 in the dust.
Image Source: Zacks Investment Research
A recovery in travel has set the company up to sail through clear waters, with its earnings forecasted to climb 60% in FY22 and 140% in FY23.
As we can see in the chart below, the company’s earnings are finally estimated to return back to the green for the first time since the pandemic.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are typically seen as steady investments, as these companies have fully established themselves through years of operations.
Of course, their steady nature is what makes them so cherished by investors, as many market participants don’t enjoy violent price swings.
But for those with an appetite for growth, many of these stocks just don’t fit the criteria.
However, all three large-caps above – Splunk , Royal Caribbean Cruises (RCL - Free Report) , and MercadoLibre Inc. (MELI - Free Report) – are exceptions, forecasted to grow their bottom line significantly over the next few years.
In addition, all three have seen their earnings outlooks drift higher, providing the cherry on top.
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3 Top Stocks With Steep Growth Trajectories
There are many different styles of investing out there. Some investors prefer to park their hard-earned cash in income-generating assets, some target value, and some target specific industries, to give a few examples.
Of course, there’s also the group of investors that have a preference for small-cap stocks, which can be seen as a less-conservative approach.
Small-caps typically have impressive growth trajectories, as these companies are in their early phases. Still, these stocks’ price swings can sometimes become spooky, causing investors to look elsewhere.
That’s precisely where large-cap stocks come in.
Three large-cap stocks – Splunk , Royal Caribbean Cruises (RCL - Free Report) , and MercadoLibre Inc. (MELI - Free Report) – all carry firm growth profiles, with earnings estimates drifting higher.
Below is a chart illustrating the performance of all three stocks over the last three months, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
For those who want to target established companies with solid growth trajectories, let’s take a closer look at each one.
MercadoLibre Inc.
MercadoLibre Inc. is one of the largest e-commerce platforms in Latin America, offering a total of six integrated e-commerce services. Currently, the company is a Zacks Rank #1 (Strong Buy).
Investors will undoubtedly appreciate MELI’s earnings estimates; the Zacks Consensus EPS Estimate of $8.20 for its current fiscal year indicates a substantial 390% Y/Y uptick in earnings.
And in FY23, estimates suggest a further 80% of earnings growth.
Image Source: Zacks Investment Research
MercadoLibre has recently impressed with its quarterly results, exceeding both earnings and revenue expectations in back-to-back releases. In its latest print, MELI penciled in an 11% earnings beat and reported revenue marginally above expectations.
Image Source: Zacks Investment Research
Splunk Inc.
Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. Currently, the company boasts a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
A strong partner base paired with high demand for cloud solutions has the company on a bright path, with earnings forecasted to soar more than 240% in its current fiscal year (FY23) and a further 40% in FY24.
Image Source: Zacks Investment Research
In addition, Splunk’s upcoming quarter is shaping up to be strong; the Zacks Consensus EPS Estimate of $1.10 indicates an improvement of more than 65% Y/Y.
Our consensus revenue estimate stands at $1.1 billion, suggesting an uptick of nearly 20% from year-ago quarterly sales of $901 million.
Image Source: Zacks Investment Research
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company that owns and operates three global brands: Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises. Presently, RCL is a Zacks Rank #2 (Buy).
The company’s shares have gotten off to a fantastic start in 2023, up more than 20% and leaving the S&P 500 in the dust.
Image Source: Zacks Investment Research
A recovery in travel has set the company up to sail through clear waters, with its earnings forecasted to climb 60% in FY22 and 140% in FY23.
As we can see in the chart below, the company’s earnings are finally estimated to return back to the green for the first time since the pandemic.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are typically seen as steady investments, as these companies have fully established themselves through years of operations.
Of course, their steady nature is what makes them so cherished by investors, as many market participants don’t enjoy violent price swings.
But for those with an appetite for growth, many of these stocks just don’t fit the criteria.
However, all three large-caps above – Splunk , Royal Caribbean Cruises (RCL - Free Report) , and MercadoLibre Inc. (MELI - Free Report) – are exceptions, forecasted to grow their bottom line significantly over the next few years.
In addition, all three have seen their earnings outlooks drift higher, providing the cherry on top.