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3 High-Performing Large-Cap Stocks

The following companies have posted positive performances so far this year, as well as over the past several years.

GuruFocus' positive rating for profitability suggests these companies will continue to report lavish gains in the coming years, eventually beating the overall market. Wall Street supports this expectation, as its sell-side analysts have issued overweight recommendation ratings for each of them.


High profitability means that these companies will very likely continue to pay dividends in the future as well, pushing share prices higher.

Diageo PLC

Shares of Diageo PLC (NYSE:DEO) have gained 13% so far this year, 17.2% over the last 52 weeks and 38.2% over the past five years through Oct. 25.

The English producer and seller of alcoholic beverages paid semi-annual dividends over the observed periods. The last semi-annual dividend of $2.089 per common share was sent out to its shareholders on Oct. 8, generating 2.16% trailing 12-month dividend yield based on Friday's closing price of $160.34 for a market cap of $94.31 billion.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a very high 9 out of 10 rating for its profitability.

Diageo has a net profit margin of 24.6% versus the industry median of 5.6%. The company's net margin is ranked higher than 197 out of a total of 213 competitors operating in the Beverages - Wineries & Distilleries industry.

The stock has a price-earnings ratio of 24.01, a price-sales ratio of 5.89 and a price-book ratio of 9.03. The Peter Lynch chart also suggests the stock is not at its cheapest.

Sell-side analysts set an average target price of $171.84 per American depository receipt of Diageo.

Pernod Ricard SA

Shares of Pernod Ricard SA (PDRDY) have gained 7.8% year to date, 18.7% over the last 52 weeks and 55.7% over the past five years through Oct. 25.

The French producer and seller of wines and spirits also paid semi-annual dividends over the periods in question. Currently, the trailing 12-month dividend yield is 1.62% based on Friday's closing price of $35.29 for a market capitalization of $46.59 billion. The last payment of 26.5 cents per common share happened on July 25. The next semi-annual dividend of 43 cents per common share will be paid on Dec. 12.

GuruFocus rated the company's financial strength with a positive score of 5 out of 10 and its profitability with a high score of 7 out of 10.

Pernod Ricard has a net profit margin of 18.15%, which is higher than the industry median of 5.55%. The company's net profit margin is ranked higher than 112 out of a total of 213 companies operating in the Beverages - Wineries & Distilleries industry.

The stock has a price-earnings ratio of 29.07, a price-sales ratio of 5.27 and a price-book ratio of 2.64. According to the Peter Lynch chart, the stock is not cheap.

The Sherwin-Williams Company

Shares of The Sherwin-Williams Company (NYSE:SHW) have climbed 46.1% year to date, 56.8% over the last 52 weeks and 156.7% over the past five years through Oct. 25.

Over these several years, the Cleveland, Ohio-based specialty chemicals company paid quarterly dividends. Currently, The Sherwin-Williams Company pays a $1.13 cash quarterly dividend per common share, producing a trailing 12-month dividend yield of 0.75% based on Friday's closing price of $574.93 per share for a market capitalization of $53.07 billion.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a very high 9 out of 10 rating for its profitability.

The company has a net profit margin of 7.81% versus the industry median of 4.91%. The company's net profit margin is ranked higher than 714 out of a total of 1,182 peers that operate in the Specialty Chemicals industry.

The stock has a price-earnings ratio of 38.64, a price-sales ratio of 3.02 and a price-book ratio of 13.38. Based on the Peter Lynch chart, the stock is not cheap.

Wall Street set an average target price of $599.55 per share of The Sherwin-Williams Company.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.