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Large-cap stocks are a staple in almost every portfolio. They are well-established, have more analyst coverage, and frequently pay dividends, all undeniably significant benefits that make them so popular among investors.
In addition, large caps typically carry a lower level of volatility, making them great considerations for those seeking a steady approach without spooky price swings.
For those with an interest in this steady approach, three stocks – Caterpillar (CAT - Free Report) , Honda Motor Co. (HMC - Free Report) , and HCA Healthcare (HCA - Free Report) – all deserve watchlist spots.
All three have seen their near-term earnings outlook shift positively, indicating optimism from analysts and favorable business conditions. Let’s take a closer look at each.
Caterpillar
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company presently sports a Zacks Rank #1 (Strong Buy), with earnings estimates increasing across the board.
Image Source: Zacks Investment Research
A major perk of CAT shares is the dividend; shares currently yield 2% annually, well above the Zacks Industrial Products sector average. Reflecting a shareholder-friendly nature, the company has grown its payout by nearly 10% over the last five years.
Image Source: Zacks Investment Research
Honda Motor Co.
Honda Motor Co. is a leading manufacturer of automobiles and motorcycles worldwide. The stock presently carries a Zacks Rank #2 (Buy), with analysts becoming notably bullish over the last several months.
Image Source: Zacks Investment Research
HMC shares aren’t expensive, further reflected by the company’s Style Score of “A” for Value. Shares currently trade at a 7.7X forward earnings multiple, below the 8.1X five-year median and the Zacks Autos sector by a notable margin.
Image Source: Zacks Investment Research
Keep an eye out for the company’s upcoming release expected on August 9th; the Zacks Consensus EPS Estimate of $0.89 indicates a 30% year-over-year climb in earnings. Our consensus revenue estimate stands at $33.6 billion, reflecting an improvement of 13% from the year-ago period.
HCA Healthcare
HCA Healthcare, a Zacks Rank #2 (Buy), is the largest non-governmental operator of acute care hospitals in the U.S. The company has enjoyed positive earnings estimate revisions, with the trend particularly noteworthy for its current fiscal year.
HCA posted a notably strong quarter in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20%. Quarterly revenue totaled $15.6 billion, exceeding expectations and improving roughly 5% year-over-year.
Image Source: Zacks Investment Research
In addition, the company continues to buy back its shares rapidly, as we can see in the chart below. As of March 31st, the company had $3.7 billion remaining under its repurchase authorizations.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in nearly every portfolio, as they provide a solid level of defense and often come paired with dividend payouts.
And all three above – Caterpillar (CAT - Free Report) , Honda Motor Co. (HMC - Free Report) , and HCA Healthcare (HCA - Free Report) – could be great considerations for those seeking large-cap exposure.
All three sport a favorable Zacks Rank, indicating near-term optimism from analysts. In addition, all three pay dividends, providing a passive income stream.
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3 Attractive Large-Caps For a Steady Approach
Large-cap stocks are a staple in almost every portfolio. They are well-established, have more analyst coverage, and frequently pay dividends, all undeniably significant benefits that make them so popular among investors.
In addition, large caps typically carry a lower level of volatility, making them great considerations for those seeking a steady approach without spooky price swings.
For those with an interest in this steady approach, three stocks – Caterpillar (CAT - Free Report) , Honda Motor Co. (HMC - Free Report) , and HCA Healthcare (HCA - Free Report) – all deserve watchlist spots.
All three have seen their near-term earnings outlook shift positively, indicating optimism from analysts and favorable business conditions. Let’s take a closer look at each.
Caterpillar
Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company presently sports a Zacks Rank #1 (Strong Buy), with earnings estimates increasing across the board.
Image Source: Zacks Investment Research
A major perk of CAT shares is the dividend; shares currently yield 2% annually, well above the Zacks Industrial Products sector average. Reflecting a shareholder-friendly nature, the company has grown its payout by nearly 10% over the last five years.
Image Source: Zacks Investment Research
Honda Motor Co.
Honda Motor Co. is a leading manufacturer of automobiles and motorcycles worldwide. The stock presently carries a Zacks Rank #2 (Buy), with analysts becoming notably bullish over the last several months.
Image Source: Zacks Investment Research
HMC shares aren’t expensive, further reflected by the company’s Style Score of “A” for Value. Shares currently trade at a 7.7X forward earnings multiple, below the 8.1X five-year median and the Zacks Autos sector by a notable margin.
Image Source: Zacks Investment Research
Keep an eye out for the company’s upcoming release expected on August 9th; the Zacks Consensus EPS Estimate of $0.89 indicates a 30% year-over-year climb in earnings. Our consensus revenue estimate stands at $33.6 billion, reflecting an improvement of 13% from the year-ago period.
HCA Healthcare
HCA Healthcare, a Zacks Rank #2 (Buy), is the largest non-governmental operator of acute care hospitals in the U.S. The company has enjoyed positive earnings estimate revisions, with the trend particularly noteworthy for its current fiscal year.
HCA posted a notably strong quarter in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20%. Quarterly revenue totaled $15.6 billion, exceeding expectations and improving roughly 5% year-over-year.
Image Source: Zacks Investment Research
In addition, the company continues to buy back its shares rapidly, as we can see in the chart below. As of March 31st, the company had $3.7 billion remaining under its repurchase authorizations.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in nearly every portfolio, as they provide a solid level of defense and often come paired with dividend payouts.
And all three above – Caterpillar (CAT - Free Report) , Honda Motor Co. (HMC - Free Report) , and HCA Healthcare (HCA - Free Report) – could be great considerations for those seeking large-cap exposure.
All three sport a favorable Zacks Rank, indicating near-term optimism from analysts. In addition, all three pay dividends, providing a passive income stream.