Large-cap stocks are a must-have in almost every portfolio. They are well-established in nature, have more analyst coverage, and frequently pay dividends, which are undeniably significant benefits that make them so popular among investors.
While many of these companies are no longer experiencing supercharged growth, several currently top-ranked large-caps are exceptions, including The Kroger Co. (KR - Free Report) , The Hershey Company (HSY - Free Report) , and Aon PLC (AON - Free Report) .
Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
For those with a preference for large-caps, let’s take a closer look at each one.
The Kroger Co.
Founded in 1883, the long-time retailer operates approximately 2,700 retail stores under its various banners and divisions in 35 states. KR sports a favorable Zacks Rank #2 (Buy).
The company is expected to grow its bottom line despite a tricky business environment; estimates for its current fiscal year (FY23) suggest Y/Y earnings growth of more than 12%.
And in FY24, the company’s bottom line is indicated to expand a further marginal 1.5%. KR carries a Style Score of “A” for Growth.
In addition, Kroger has shown a commitment to increasingly rewarding its shareholders, carrying a 15% five-year annualized dividend growth rate.
KR’s annual dividend currently yields 2.3%, nicely above its Zacks Retail and Wholesale sector average.
The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. HSY has recently seen its earnings outlook drift higher, helping push the stock into a Zacks Rank #2 (Buy).
It’s hard to ignore HSY’s quarterly performance; the company has exceeded both top and bottom line estimates in nine consecutive quarters.
In its latest release, Hershey reported EPS nearly 5% above expectations and posted a 4% revenue surprise.
Estimates for Hershey’s current fiscal year (FY22) suggest Y/Y earnings growth of 16% and a 15% revenue increase.
And in FY23, the company’s earnings and revenue are forecasted to climb 8% and 6.5%, respectively. HSY sports a Style Score of “B” for Growth.
Aon PLC
Aon is a multinational corporation offering risk management services, insurance and reinsurance brokerage, human resource consulting, and outsourcing services worldwide.
Aon has seen its earnings outlook improve across all timeframes, pushing the stock into a Zacks Rank #2 (Buy).
Aon has generated solid cash as of late; in its latest quarter, the company generated nearly $1 billion in free cash flow, good enough for a 60% sequential uptick.
As we can see in the chart below, the company’s free cash flow has recovered nicely from 2021 lows.
And for the cherry on top, the company is expected to grow at a solid pace; for its current fiscal year, the Zacks Consensus EPS Estimate of $13.16 suggests Y/Y earnings growth of nearly 10%.
Pivoting to next year, estimates suggest a further 11% of earnings growth.
Bottom Line
Large-cap stocks are found in every portfolio, and for understandable reasons – they’re highly liquid, carry strong brand recognition, boast top-tier management, and carry a strong level of stability.
While these companies generally don’t enjoy breakneck growth anymore, all three stocks above – The Kroger Co. (KR - Free Report) , The Hershey Company (HSY - Free Report) , and Aon PLC (AON - Free Report) – have bright growth outlooks, all expected to grow their earnings by at least 9% in their current fiscal years.
Further, all three have witnessed positive earnings estimate revisions as of late, indicating that their near-term business outlooks are fruitful.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Large-cap stocks are a must-have in almost every portfolio. They are well-established in nature, have more analyst coverage, and frequently pay dividends, which are undeniably significant benefits that make them so popular among investors.
While many of these companies are no longer experiencing supercharged growth, several currently top-ranked large-caps are exceptions, including The Kroger Co. (KR - Free Report) , The Hershey Company (HSY - Free Report) , and Aon PLC (AON - Free Report) .
Below is a chart illustrating the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
For those with a preference for large-caps, let’s take a closer look at each one.
The Kroger Co.
Founded in 1883, the long-time retailer operates approximately 2,700 retail stores under its various banners and divisions in 35 states. KR sports a favorable Zacks Rank #2 (Buy).
The company is expected to grow its bottom line despite a tricky business environment; estimates for its current fiscal year (FY23) suggest Y/Y earnings growth of more than 12%.
And in FY24, the company’s bottom line is indicated to expand a further marginal 1.5%. KR carries a Style Score of “A” for Growth.
In addition, Kroger has shown a commitment to increasingly rewarding its shareholders, carrying a 15% five-year annualized dividend growth rate.
KR’s annual dividend currently yields 2.3%, nicely above its Zacks Retail and Wholesale sector average.
The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. HSY has recently seen its earnings outlook drift higher, helping push the stock into a Zacks Rank #2 (Buy).
It’s hard to ignore HSY’s quarterly performance; the company has exceeded both top and bottom line estimates in nine consecutive quarters.
In its latest release, Hershey reported EPS nearly 5% above expectations and posted a 4% revenue surprise.
Estimates for Hershey’s current fiscal year (FY22) suggest Y/Y earnings growth of 16% and a 15% revenue increase.
And in FY23, the company’s earnings and revenue are forecasted to climb 8% and 6.5%, respectively. HSY sports a Style Score of “B” for Growth.
Aon PLC
Aon is a multinational corporation offering risk management services, insurance and reinsurance brokerage, human resource consulting, and outsourcing services worldwide.
Aon has seen its earnings outlook improve across all timeframes, pushing the stock into a Zacks Rank #2 (Buy).
Aon has generated solid cash as of late; in its latest quarter, the company generated nearly $1 billion in free cash flow, good enough for a 60% sequential uptick.
As we can see in the chart below, the company’s free cash flow has recovered nicely from 2021 lows.
And for the cherry on top, the company is expected to grow at a solid pace; for its current fiscal year, the Zacks Consensus EPS Estimate of $13.16 suggests Y/Y earnings growth of nearly 10%.
Pivoting to next year, estimates suggest a further 11% of earnings growth.
Bottom Line
Large-cap stocks are found in every portfolio, and for understandable reasons – they’re highly liquid, carry strong brand recognition, boast top-tier management, and carry a strong level of stability.
While these companies generally don’t enjoy breakneck growth anymore, all three stocks above – The Kroger Co. (KR - Free Report) , The Hershey Company (HSY - Free Report) , and Aon PLC (AON - Free Report) – have bright growth outlooks, all expected to grow their earnings by at least 9% in their current fiscal years.
Further, all three have witnessed positive earnings estimate revisions as of late, indicating that their near-term business outlooks are fruitful.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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