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3 Attractive Large-Caps Investors Shouldn't Ignore

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There is a wide variety of investing styles out there, whether that be value-focused or targeting a specific industry.

Of course, some also prefer to tailor their investing style to target primarily large-cap stocks.

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.

Three large-caps – JPMorgan (JPM - Free Report) , NetEase (NTES - Free Report) , and Honda Motor Co. (HMC - Free Report) – could all be considerations for those seeking exposure to large-caps.

All three sport a favorable Zacks Rank, indicating near-term optimism from analysts. Let’s take a closer look at each.

JPMorgan

JPMorgan’s earnings outlook has turned visibly bright over the last several months, with the revisions trend particularly noteworthy for its current fiscal year. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

The financial titan posted results that came in nicely above expectations in its latest release, exceeding the Zacks Consensus EPS Estimate by 20%. Quarterly revenue totaled $38.3 billion, 9% ahead of expectations and improving nicely from the year-ago period.

In addition, JPM shares currently yield 2.9% annually, above the Zacks Finance sector average by a fair margin. The company has grown its payout, carrying a 10% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

NetEase

NetEase is an Internet technology company engaged in the development of applications, services, and other technologies for the Internet in China. Analysts have taken a bullish stance on the company’s earnings outlook, pushing the stock into a Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

The company boasts a strong growth outlook, with earnings forecasted to climb 16% in its current fiscal year (FY23) on 3.5% higher revenues. And in FY24, earnings and revenue are forecasted to climb an additional 13% and 8%, respectively.

NetEase has shown a commitment to increasingly rewarding its shareholders, reflected by the company’s 32% five-year annualized dividend growth rate. NTES shares currently yield 1.2% annually, above the Zacks Computer and Technology sector average by a fair margin.

Zacks Investment Research
Image Source: Zacks Investment Research

Honda Motor Co.

Like the stocks above, analysts have become bullish on Honda’s earnings outlook, with positive earnings estimate revisions hitting the tape across the board over the last several months.

Zacks Investment Research
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.

Zacks Investment Research
Image Source: Zacks Investment Research

Further, the current forward price-to-sales ratio works out to be a small 0.4X, again below the Zacks sector average and precisely in line with the five-year median.

Zacks Investment Research
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 – JPMorgan (JPM - Free Report) , NetEase (NTES - Free Report) , and Honda Motor Co. (HMC - Free Report) – could be great considerations for those seeking large-cap exposure.


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JPMorgan Chase & Co. (JPM) - free report >>

Honda Motor Co., Ltd. (HMC) - free report >>

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