We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Large-cap stocks are a staple in nearly every portfolio. They’re well-established in nature, have greater analyst coverage, and commonly pay dividends, undoubtedly significant perks that make them so beloved among investors.
While many of these stocks no longer enjoy supercharged growth, there are still several currently top-ranked large-caps with impressive earnings outlooks, including PepsiCo (PEP - Free Report) , Deere & Company (DE - Free Report) , and Paychex Inc. (PAYX - Free Report) .
The chart below illustrates the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have outperformed the S&P 500 over the last year, indicating positive momentum. Let’s take a closer look at each one.
PepsiCo Inc.
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Currently, the company sports a favorable Zacks Rank #2 (Buy).
A significant positive, PepsiCo belongs to the elite Dividend Kings group, showing an unparalleled commitment to its shareholders through 50+ years of increased payouts.
PEP’s annual dividend currently yields 2.5%, a few ticks below its Zacks Consumer Staples sector average of 2.7%. Still, PepsiCo’s 6.5% five-year annualized dividend growth rate helps bridge the gap.
Image Source: Zacks Investment Research
PepsiCo has been on an impressive earnings streak as of late, exceeding earnings and revenue estimates in each of its last three quarters. In its latest release, PEP registered a 6.5% EPS beat and reported revenue 5.3% above expectations.
Image Source: Zacks Investment Research
Deere & Company
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand and signature green and yellow color scheme.
The company has witnessed positive earnings estimate revisions roll in from analysts, helping push the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
DE shares aren’t expensive, further displayed by its Style Score of “B” for value. The company’s forward earnings multiple resides at 15.3X, nicely beneath its 16.6X five-year median and Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
Paychex Inc.
Paychex is a recognized leader in the payroll, human resource, and benefits outsourcing industry. Like the stocks above, PAYX’s earnings outlook has drifted higher over the last several months, pushing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
PAYX carries a favorable growth profile, with earnings forecasted to climb 13% in FY23 and a further 8% in FY24. The projected earnings growth comes on top of estimated Y/Y revenue upticks of 8.2% and 6% in FY23 and FY24, respectively.
Image Source: Zacks Investment Research
And for the cherry on top, the company rewards its shareholders handsomely; PAYX's annual dividend currently yields a solid 2.7%, nicely above its Zacks Business Services sector average of roughly 1%.
Impressively, the company’s payout has grown by nearly 8% over the last five years.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in every portfolio, and for understandable reasons – large-caps are highly liquid, carry strong brand recognition, boast top-tier management, and carry a strong level of stability.
In addition, they often pay dividends, another stellar aspect of these companies.
For those searching for large-cap stocks with solid earnings outlooks, all three stocks above – PepsiCo (PEP - Free Report) , Deere & Company (DE - Free Report) , and Paychex Inc. (PAYX - Free Report) – could be of consideration.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
3 Top-Ranked Large Caps For a Steady Portfolio
Large-cap stocks are a staple in nearly every portfolio. They’re well-established in nature, have greater analyst coverage, and commonly pay dividends, undoubtedly significant perks that make them so beloved among investors.
While many of these stocks no longer enjoy supercharged growth, there are still several currently top-ranked large-caps with impressive earnings outlooks, including PepsiCo (PEP - Free Report) , Deere & Company (DE - Free Report) , and Paychex Inc. (PAYX - Free Report) .
The chart below illustrates the performance of all three stocks over the last year, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
As we can see, all three have outperformed the S&P 500 over the last year, indicating positive momentum. Let’s take a closer look at each one.
PepsiCo Inc.
PepsiCo is a long-established company engaged in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. Currently, the company sports a favorable Zacks Rank #2 (Buy).
A significant positive, PepsiCo belongs to the elite Dividend Kings group, showing an unparalleled commitment to its shareholders through 50+ years of increased payouts.
PEP’s annual dividend currently yields 2.5%, a few ticks below its Zacks Consumer Staples sector average of 2.7%. Still, PepsiCo’s 6.5% five-year annualized dividend growth rate helps bridge the gap.
Image Source: Zacks Investment Research
PepsiCo has been on an impressive earnings streak as of late, exceeding earnings and revenue estimates in each of its last three quarters. In its latest release, PEP registered a 6.5% EPS beat and reported revenue 5.3% above expectations.
Image Source: Zacks Investment Research
Deere & Company
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under the iconic John Deere brand and signature green and yellow color scheme.
The company has witnessed positive earnings estimate revisions roll in from analysts, helping push the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
DE shares aren’t expensive, further displayed by its Style Score of “B” for value. The company’s forward earnings multiple resides at 15.3X, nicely beneath its 16.6X five-year median and Zacks Industrial Products sector average.
Image Source: Zacks Investment Research
Paychex Inc.
Paychex is a recognized leader in the payroll, human resource, and benefits outsourcing industry. Like the stocks above, PAYX’s earnings outlook has drifted higher over the last several months, pushing it into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
PAYX carries a favorable growth profile, with earnings forecasted to climb 13% in FY23 and a further 8% in FY24. The projected earnings growth comes on top of estimated Y/Y revenue upticks of 8.2% and 6% in FY23 and FY24, respectively.
Image Source: Zacks Investment Research
And for the cherry on top, the company rewards its shareholders handsomely; PAYX's annual dividend currently yields a solid 2.7%, nicely above its Zacks Business Services sector average of roughly 1%.
Impressively, the company’s payout has grown by nearly 8% over the last five years.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in every portfolio, and for understandable reasons – large-caps are highly liquid, carry strong brand recognition, boast top-tier management, and carry a strong level of stability.
In addition, they often pay dividends, another stellar aspect of these companies.
For those searching for large-cap stocks with solid earnings outlooks, all three stocks above – PepsiCo (PEP - Free Report) , Deere & Company (DE - Free Report) , and Paychex Inc. (PAYX - Free Report) – could be of consideration.