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3 Highly Ranked Large-Cap Stocks for Investors to Buy
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Large-Cap stocks are one of the best ways to get exposure to the stock market. To become a large-cap company, the business must prove its worth over an extended period (usually) while under constant public scrutiny of professional investors. They most often offer less volatility, and more predictable returns than their small-cap counter parts.
Using one of Zacks many premium screens I was able to identify three large-cap stocks with strong near-term expectations, and reasonable valuations.
American Express (AXP - Free Report) is a diversified financial services company, offering charge and credit card products, and travel-related services worldwide. American Express offers its customers a premium service with generous customer loyalty perks, and fraud protection. The company is divided into four segments: U.S. consumer services, commercial services, international card services, and global merchant and network services.
American Express has a Zacks Rank #2 (Buy), indicating upward trending earnings revisions. Current quarter sales are projected to grow 19% to $14 billion, while current quarter earnings are expected to fall -2.6% to $2.66 per share. Current quarter declines are primarily due to increased marketing and business development expenses. Next quarter and current year earnings are expected to resume strong growth, with current year earnings forecasted at $11.24 per share, a 14% YoY increase.
Current quarter earnings revisions have also seen mixed updates, although they are still up slightly over the last 90 days. The rest of the timeframes have seen significant revisions higher over the same period.
Image Source: Zacks Investment Research
Over the last ten years AXP stock has averaged annual returns of 10%. YTD the stock is up 7%, but well off its high, when it was up 24%. This pullback offers an opportunity for discerning investors.
American Express is trading at a very reasonable valuation. With a one-year forward earnings multiple of 14x it is just below its 10-year median of 15x. AXP also offers a dividend yield of 1.5%, which it has raised an average of 7.5% annually over the last five years. Where it stands currently, AXP offers a very nice mix of value and growth.
Image Source: Zacks Investment Research
Cisco
Cisco (CSCO - Free Report) is a digital communications technology conglomerate based in San Jose California. CSCO designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other technology products. The company has many industry leading products across a number of domains including Internet of Things (IoT), cyber security, videoconferencing, energy management, OpenDNS and many others.
Cisco has been around since 1990 so it has seen many different economic environments. During the early 2000s technology bubble its, market cap exploded to $500 billion and was trading at a 100x earnings multiple. It has since evolved into a steady slow growth stock, and a company that produces so critical technological infrastructure.
Cisco boasts a Zacks Rank #2 (Buy), indicating upward trending earnings revisions. Analysts are in unanimous agreement in revising earnings higher recently.
Image Source: Zacks Investment Research
Even as an older tech company Cisco shows steady double-digit sales and earnings growth. Current quarter sales are expected to grow 12%YoY to $14.4 billion and earnings are projected to climb 12% to $0.97 per share.
Cisco offers a dividend yield of 3.1% and it has raised its dividend by an average of 4.1% annually over the last five years.
Image Source: Zacks Investment Research
CSCO is trading at a one-year forward earnings multiple of 14x, which is below is 20-year median of 15x.
Image Source: Zacks Investment Research
The Kroger Co.
Kroger (KR - Free Report) operates as an all-in-one retail outlet. It combines food, pharmacy, pet centers, home goods, fashion and more. It has recently revamped its offerings to realign with modern shopping preferences.
KR is a Zack Rank #2 (Buy) stock, meaning that it has upward trending earnings revisions.
Image Source: Zacks Investment Research
Kroger stock has been a strong long-term performer. Over the last 20 years it has more than 8x’d investors’ money and done so with relatively low volatility. It also offers a dividend yield of 2.2%. Management has boosted dividend payment by an average of 15% annually over the last five years.
Image Source: Zacks Investment Research
Kroger is trading at a one-year forward earnings multiple of 10x, which is well below its 20-year median of 13x and nearing its all-time low of 8x.
Image Source: Zacks Investment Research
Conclusion
It is hard to go wrong investing in steady earning, reasonably valued large-cap stocks. One of the best ways to identify quality businesses is by utilizing stock screeners. Zacks Premium screens offer pre-selected variable for investors to fit to all portfolio needs.
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3 Highly Ranked Large-Cap Stocks for Investors to Buy
Large-Cap stocks are one of the best ways to get exposure to the stock market. To become a large-cap company, the business must prove its worth over an extended period (usually) while under constant public scrutiny of professional investors. They most often offer less volatility, and more predictable returns than their small-cap counter parts.
Using one of Zacks many premium screens I was able to identify three large-cap stocks with strong near-term expectations, and reasonable valuations.
https://www.zacks.com/screening/premium-screens?icid=screening-screening-nav_tracking-zcom-main_menu_wrapper-premium_screens
American Express
American Express (AXP - Free Report) is a diversified financial services company, offering charge and credit card products, and travel-related services worldwide. American Express offers its customers a premium service with generous customer loyalty perks, and fraud protection. The company is divided into four segments: U.S. consumer services, commercial services, international card services, and global merchant and network services.
American Express has a Zacks Rank #2 (Buy), indicating upward trending earnings revisions. Current quarter sales are projected to grow 19% to $14 billion, while current quarter earnings are expected to fall -2.6% to $2.66 per share. Current quarter declines are primarily due to increased marketing and business development expenses. Next quarter and current year earnings are expected to resume strong growth, with current year earnings forecasted at $11.24 per share, a 14% YoY increase.
Current quarter earnings revisions have also seen mixed updates, although they are still up slightly over the last 90 days. The rest of the timeframes have seen significant revisions higher over the same period.
Image Source: Zacks Investment Research
Over the last ten years AXP stock has averaged annual returns of 10%. YTD the stock is up 7%, but well off its high, when it was up 24%. This pullback offers an opportunity for discerning investors.
American Express is trading at a very reasonable valuation. With a one-year forward earnings multiple of 14x it is just below its 10-year median of 15x. AXP also offers a dividend yield of 1.5%, which it has raised an average of 7.5% annually over the last five years. Where it stands currently, AXP offers a very nice mix of value and growth.
Image Source: Zacks Investment Research
Cisco
Cisco (CSCO - Free Report) is a digital communications technology conglomerate based in San Jose California. CSCO designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other technology products. The company has many industry leading products across a number of domains including Internet of Things (IoT), cyber security, videoconferencing, energy management, OpenDNS and many others.
Cisco has been around since 1990 so it has seen many different economic environments. During the early 2000s technology bubble its, market cap exploded to $500 billion and was trading at a 100x earnings multiple. It has since evolved into a steady slow growth stock, and a company that produces so critical technological infrastructure.
Cisco boasts a Zacks Rank #2 (Buy), indicating upward trending earnings revisions. Analysts are in unanimous agreement in revising earnings higher recently.
Image Source: Zacks Investment Research
Even as an older tech company Cisco shows steady double-digit sales and earnings growth. Current quarter sales are expected to grow 12%YoY to $14.4 billion and earnings are projected to climb 12% to $0.97 per share.
Cisco offers a dividend yield of 3.1% and it has raised its dividend by an average of 4.1% annually over the last five years.
Image Source: Zacks Investment Research
CSCO is trading at a one-year forward earnings multiple of 14x, which is below is 20-year median of 15x.
Image Source: Zacks Investment Research
The Kroger Co.
Kroger (KR - Free Report) operates as an all-in-one retail outlet. It combines food, pharmacy, pet centers, home goods, fashion and more. It has recently revamped its offerings to realign with modern shopping preferences.
KR is a Zack Rank #2 (Buy) stock, meaning that it has upward trending earnings revisions.
Image Source: Zacks Investment Research
Kroger stock has been a strong long-term performer. Over the last 20 years it has more than 8x’d investors’ money and done so with relatively low volatility. It also offers a dividend yield of 2.2%. Management has boosted dividend payment by an average of 15% annually over the last five years.
Image Source: Zacks Investment Research
Kroger is trading at a one-year forward earnings multiple of 10x, which is well below its 20-year median of 13x and nearing its all-time low of 8x.
Image Source: Zacks Investment Research
Conclusion
It is hard to go wrong investing in steady earning, reasonably valued large-cap stocks. One of the best ways to identify quality businesses is by utilizing stock screeners. Zacks Premium screens offer pre-selected variable for investors to fit to all portfolio needs.