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Large Cap Stocks Make You Bigger Profits

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Trading stocks may be exciting. Yet oddly enough, it is often the most boring stocks that make money consistently.

There are lots of positives to be written about Large Cap stocks -- that is, those with stock market capitalizations above $5 billion plus.

Big companies own the most attractive economic fundamentals. Their underlying businesses gain traction with major revenue footprints. These firms operate multiple lines under experienced management teams. Their products and services deploy well-known -- high margin -- corporate brand names.

Stocks tied to big companies are also much less prone to unseen wickedness. They can't be easily rocked by broad stock market dips, scary news headlines, or suffer much from unforeseen foibles found with a single business line.

Unlike small caps, large cap stocks usually pay nice dividends and management increases them over time, as their underlying advantages gel into bigger profits.

For all of these reasons, Large Cap stocks are usually regarded as low risk payoffs. In simple terms, Large Cap stocks are more comfortable and conservative and, yes, they can be a little boring.

Let me sum it up for you. A Large Cap stock portfolio should be your CORE profit-making tool.

• Large Caps protect equity portfolios from too much share price volatility.
• Large Caps offer a conservative approach, great for a Late Cycle stock market like this one.

Yet, excitement is available with Large Caps -- for those traders who dig further.

More . . .


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Want Better Returns and Sounder Sleep?

Large Cap stocks offer greater resistance to volatility. They're less likely to be rocked by market dips, scary headlines, or the loss of a single business contract.

Yet some of these big, stable companies are little known and still have significant growth potential.

For example, earlier this year Zacks closed a gain of +112.4% in less than 4 months. If you'd like to see the latest stocks in our portfolio, there's a special advantage for doing so by midnight Sunday, August 27.

Look Into Zacks' Best Large Caps Now >>

 

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THE FINEST REASONS POINT TO GLOBAL LARGE CAPS

Let's face it. This is one of the longest bull markets in history. Admittedly, the U.S. can experience a new recession. Think about the U.S. Internet and Subprime housing busts. Tack on any number of plain vanilla event-driven global pullbacks, corrections, and regional recessions that hit.

When U.S. and global equity market conditions turn bearish, where do you turn? Well-selected, less risky Large Cap stocks are a clean answer. They can hold onto substantial wealth.

Diversification is a core idea to any Asset Allocation Theory. A great one was put forth by 1990 Nobel Prize winner Harry Markowitz. He recommended 30% of an investor's portfolio be devoted to non-U.S. stocks. The rest should go into U.S. stocks -- with mostly Large Caps in each of those buckets.

70% of global equities which trade over $100 million or more each day are U.S. stocks: Most of these are Large Caps!

In sum, U.S. Large Caps should get most of your focus in a diversified portfolio.

Due to the growing use of passive Exchange-Traded Funds (ETFs), and to much greater trading liquidity over time, investing institutions put more money to work on Large Caps. That's a stock market advantage to exploit.

In recent years, Large Cap share prices have gone up much faster than real earnings growth. That shows you the deep buying interest.

Finally, Large Cap stocks in select global regions recently remain undervalued. Outside U.S. listings, many big foreign multinational companies can offer shares to you at substantial discounts.

A diversified Large Cap stock portfolio-trading tool offers you a surprisingly nimble means to profit across these multiple stock exchanges. Such a Large Cap stock selection service can think and act "Globally" -- buying and selling U.S. and non-U.S. stocks.

These stock selection benefits are very, very real.


TOP ZACKS STOCKS SHOW YOU STRONGER BOTTOM-LINE PROFITS

The Large Caps' powerful incentives endure. Looking solely into the Large Cap stock universe means we can focus and find strong companies, ones that have the most thorough public analyst coverage.

Successful Large Cap stocks will surely be located in broad industry niches booming several times faster than the U.S. or the global economy. We can identify the most active shares, deploying the Zacks Industry Rank tool.

For instance, think about how the economies of Israel, Mexico, India, and China grow +3 to +7% a year. U.S. real GDP might grow +2% a year in 2017. We can always find Large Cap stocks consistently growing +10 to +12% a year.

A durable example remains the Semiconductors. Many of the 36 companies in this high-growth industry secure a top Zacks Rank.

One final, subtle truth lingers with the Zacks Rank. Our specific share price signals work best with more than 3 covering analysts. Large Cap stocks ALWAYS offer you that deep analyst coverage.


YOUR LARGE CAP PORTFOLIO OPPORTUNITY AWAITS

Select Large Cap stocks can significantly boost a portfolio's profit potential. Especially when Zacks Rank timeliness is applied to enhance stock buys and sells over extended intervals of 3 to 6 months.

For example, earlier this year I closed a +112.4% gain in less than 4 months. (I continue to hold 30% of the position.)

If you'd like to see that stock and others, you are welcome to check out my Zacks Large-Cap Trader portfolio.

On top of identifying the best revenue expansion & profit growth trends, via quantitative Zacks earnings estimate revisions -- updated daily -- this service can identify contrarian and relative-value opportunities to mine for added profits.

There is no 'devil in the details'. No Large Cap recommendation looks "exotic". Large Cap shares are not complicated to buy. Large Cap stocks can be easily traded via any brokerage account.

Most of all, our Large Cap stocks offer exceptional, conservative profit potential -- when approached, selected, and monitored with a precise "edge" -- like the enduring Zacks Rank.

Traders have to know exactly where to look. And exactly when to make moves.

Today I invite you to look inside this portfolio and follow it for 30 days. I will alert you to the where's and when's so you can pursue maximum profits on our selected stocks.

Special Bonus: In addition to trying Large-Cap Trader, you may download 5 Stocks Set to Double free. Five Zacks experts each recommend their single favorite trade to increase +100% or more in the next 12 months. This bonus opportunity ends midnight Sunday, August 27.

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Wishing the best to you and your trades!

John Blank

John Blank PhD is Chief Equity Strategist at Zacks. His daily global commentary and top stock recommendations are available on Zacks Large-Cap Trader.


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