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Large-cap stocks are present in almost every portfolio. They carry a well-established nature, have greater analyst coverage, and commonly pay dividends, all of which make them so popular.
Of course, their steady nature may not appeal to all. Still, the decreased volatility large-caps possess is well worth it in the eyes of more conservative investors.
For those seeking large-cap exposure, three stocks – Caterpillar (CAT - Free Report) , Alibaba (BABA - Free Report) , and Aflac (AFL - Free Report) – have all seen their near-term outlooks shift positively. Let’s take a closer look at each.
Alibaba
Alibaba, a current Zacks Rank #1 (Strong Buy), is one of the leading e-commerce giants in China. The company has enjoyed positive earnings estimate revisions across the board, with the revisions trend particularly bullish for its current year.
Image Source: Zacks Investment Research
The company has a history of exceeding bottom line expectations, surpassing the Zacks Consensus EPS Estimate by an average of 18% across its last four releases. Just in its latest print, BABA posted a 22% EPS beat and reported revenue 5% ahead of the consensus.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
And the company is forecasted to post solid growth in its current year (FY24), with Zacks Consensus Estimates suggesting 15% earnings growth on 5% higher revenues. Peeking ahead to FY25, estimates allude to a further 7% bump in earnings paired with a 9% sales boost.
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 stock is a Zacks Rank #1 (Strong Buy), with earnings expectations shifting positively over the last several months.
Image Source: Zacks Investment Research
CAT shares aren’t valuation stretched given its growth trajectory, with earnings forecasted to climb 40% in its current year on 12% higher revenues. Shares presently trade at a 14.1X forward earnings multiple, beneath the 15.8X five-year median and high of 21.4X in 2022.
Image Source: Zacks Investment Research
Caterpillar shareholders also get to enjoy steady and consistent dividend payouts, as the company belongs to the elite Dividend Aristocrats club. Shares currently yield 1.9% annually, with the payout growing by 7% annually over the last five years.
Image Source: Zacks Investment Research
Aflac
Aflac, a current Zacks Rank #1 (Strong Buy), is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company has seen modest positive earnings estimate revisions among all timeframes.
Image Source: Zacks Investment Research
Like CAT, Aflac is a member of the Dividend Aristocrats club, showing a notable commitment to shareholders through 25+ years of increased payouts. AFL shares currently yield 2.2%, with the company sporting a 12% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Large caps are found in nearly every portfolio, as their stable nature and successful track records are impossible to ignore.
And for those seeking large-cap exposure, all three stocks above – Caterpillar (CAT - Free Report) , Alibaba (BABA - Free Report) , and Aflac (AFL - Free Report) – could be great considerations, all boasting improved earnings outlooks.
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3 Large-Caps to Buy for a Steady Approach
Large-cap stocks are present in almost every portfolio. They carry a well-established nature, have greater analyst coverage, and commonly pay dividends, all of which make them so popular.
Of course, their steady nature may not appeal to all. Still, the decreased volatility large-caps possess is well worth it in the eyes of more conservative investors.
For those seeking large-cap exposure, three stocks – Caterpillar (CAT - Free Report) , Alibaba (BABA - Free Report) , and Aflac (AFL - Free Report) – have all seen their near-term outlooks shift positively. Let’s take a closer look at each.
Alibaba
Alibaba, a current Zacks Rank #1 (Strong Buy), is one of the leading e-commerce giants in China. The company has enjoyed positive earnings estimate revisions across the board, with the revisions trend particularly bullish for its current year.
Image Source: Zacks Investment Research
The company has a history of exceeding bottom line expectations, surpassing the Zacks Consensus EPS Estimate by an average of 18% across its last four releases. Just in its latest print, BABA posted a 22% EPS beat and reported revenue 5% ahead of the consensus.
Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
And the company is forecasted to post solid growth in its current year (FY24), with Zacks Consensus Estimates suggesting 15% earnings growth on 5% higher revenues. Peeking ahead to FY25, estimates allude to a further 7% bump in earnings paired with a 9% sales boost.
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 stock is a Zacks Rank #1 (Strong Buy), with earnings expectations shifting positively over the last several months.
Image Source: Zacks Investment Research
CAT shares aren’t valuation stretched given its growth trajectory, with earnings forecasted to climb 40% in its current year on 12% higher revenues. Shares presently trade at a 14.1X forward earnings multiple, beneath the 15.8X five-year median and high of 21.4X in 2022.
Image Source: Zacks Investment Research
Caterpillar shareholders also get to enjoy steady and consistent dividend payouts, as the company belongs to the elite Dividend Aristocrats club. Shares currently yield 1.9% annually, with the payout growing by 7% annually over the last five years.
Image Source: Zacks Investment Research
Aflac
Aflac, a current Zacks Rank #1 (Strong Buy), is an American insurance company and a massive supplier of supplemental insurance within the U.S. The company has seen modest positive earnings estimate revisions among all timeframes.
Image Source: Zacks Investment Research
Like CAT, Aflac is a member of the Dividend Aristocrats club, showing a notable commitment to shareholders through 25+ years of increased payouts. AFL shares currently yield 2.2%, with the company sporting a 12% five-year annualized dividend growth rate.
Image Source: Zacks Investment Research
Bottom Line
Large caps are found in nearly every portfolio, as their stable nature and successful track records are impossible to ignore.
And for those seeking large-cap exposure, all three stocks above – Caterpillar (CAT - Free Report) , Alibaba (BABA - Free Report) , and Aflac (AFL - Free Report) – could be great considerations, all boasting improved earnings outlooks.