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3 Top-Ranked Large-Caps With Big Growth

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Large-cap stocks are a staple in every portfolio. They’re well-established, have greater analyst coverage, typically pay dividends, and help shield investors from volatility, undoubtedly significant perks that make them so beloved.

Further, these companies are less likely to face an economic or business circumstance that will cause insolvency.

While many of these stocks no longer enjoy supercharged growth, there are still several currently top-ranked large-caps with impressive growth profiles, including Elevance Health (ELV - Free Report) , Archer Daniels Midland (ADM - Free Report) , and Marathon Petroleum Corp. (MPC - Free Report) .

Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.

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Image Source: Zacks Investment Research

As we can see, on top of impressive growth profiles, all three stocks have witnessed positive momentum in 2022, outperforming the S&P 500 by wide margins.  

Let’s take a deeper dive into each one.

Elevance Health

Elevance Health operates as a health benefits company, supporting consumers, families, and communities across the entire care journey to lead healthier lives. The company sports a favorable Zacks Rank #2 (Buy).

The company has found success with its earnings releases as of late, exceeding both top and bottom-line estimates in back-to-back quarters. In its latest print, ELV registered a 6% EPS beat paired with a 1.3% revenue beat.

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Image Source: Zacks Investment Research

Further, for those who seek income, ELV’s got that covered; ELV’s annual dividend currently yields 1%, modestly below its Zacks Medical sector average of 1.4%.

While the yield is below its sector average, the company’s 15% five-year annualized dividend growth rate picks up the slack in a big way.

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Image Source: Zacks Investment Research

For the cherry on top, Elevance carries an inspiring growth profile, with earnings forecasted to climb 12% in FY22 and a further 12.5% in FY23.

The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 13.7% and 5.3% in FY22 and FY23, respectively.

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Image Source: Zacks Investment Research

Archer Daniels Midland

Archer Daniels Midland is a leading producer of food and beverage ingredients and goods made from various agricultural products.

Analysts have upped their earnings outlook across the board over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).

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Image Source: Zacks Investment Research

Additionally, ADM is a Dividend Aristocrat, showing an exceptional commitment to shareholders through a minimum of 25 consecutive years of increased dividend payouts.

ADM’s annual dividend currently yields 1.7% paired with a payout ratio sitting sustainably at 22% of its earnings. While the yield may be lower than its Zacks sector average, the company’s consistent, reliable, increasing payouts provide a massive boost.

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Image Source: Zacks Investment Research

The company carries a strong growth profile for its current fiscal year (FY22), with earnings and revenue forecasted to increase by 42% and 19% Y/Y, respectively.

Still, it’s worth noting that the growth slows down in FY23, with earnings forecasted to decline nearly 15% and revenue indicated to decrease by a marginal 1%.

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Image Source: Zacks Investment Research

Marathon Petroleum

Marathon Petroleum Corporation is a leading independent refiner, transporter, and marketer of petrol products with refineries spanning across a vast portion of the United States. MPC sports a Zacks Rank #2 (Buy).

Analysts have substantially upped their earnings outlook across the board over the last several months.

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Image Source: Zacks Investment Research

It’s nearly impossible to ignore the company’s growth trajectory; earnings estimates for its current fiscal year suggest an improvement of almost 950% Y/Y. The growth slows down in FY23, with earnings forecasted to take a 34% hit.

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Image Source: Zacks Investment Research

The company’s annual dividend currently yields a solid 2.5% paired with a 7% five-year annualized dividend growth rate. Further, MPC pays out 11% of its earnings.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

When thinking of stocks, large-caps are sure to be found in every portfolio. These businesses have proven themselves over time and operate in well-established industries, providing a lower-risk approach.

On top of being shields from volatility, large caps typically have greater analyst coverage and pay consistent dividends.

All three large-cap stocks above – Elevance Health (ELV - Free Report) , Archer Daniels Midland (ADM - Free Report) , and Marathon Petroleum Corp. (MPC - Free Report) – could all be considerations for investors.

All three stocks carry inspiring growth profiles paired with favorable Zacks Ranks, undoubtedly a strong pairing that bodes well for their near-term.  


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Archer Daniels Midland Company (ADM) - free report >>

Marathon Petroleum Corporation (MPC) - free report >>

Elevance Health, Inc. (ELV) - free report >>

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