U.S. Markets closed
  • S&P 500

    4,117.86
    -46.14 (-1.11%)
     
  • Dow 30

    33,949.01
    -207.68 (-0.61%)
     
  • Nasdaq

    11,910.52
    -203.27 (-1.68%)
     
  • Russell 2000

    1,942.60
    -30.01 (-1.52%)
     
  • Crude Oil

    78.48
    +1.34 (+1.74%)
     
  • Gold

    1,888.50
    +3.70 (+0.20%)
     
  • Silver

    22.34
    +0.16 (+0.73%)
     
  • EUR/USD

    1.0718
    -0.0013 (-0.1179%)
     
  • 10-Yr Bond

    3.6530
    -0.0210 (-0.57%)
     
  • Vix

    19.63
    +0.97 (+5.20%)
     
  • GBP/USD

    1.2071
    +0.0019 (+0.1557%)
     
  • USD/JPY

    131.4400
    +0.3680 (+0.2808%)
     
  • BTC-USD

    22,964.32
    -246.47 (-1.06%)
     
  • CMC Crypto 200

    529.21
    -7.68 (-1.43%)
     
  • FTSE 100

    7,885.17
    +20.46 (+0.26%)
     
  • Nikkei 225

    27,606.46
    -79.01 (-0.29%)
     

3 Top-Ranked Large-Caps With Big Growth

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, Archer Daniels Midland ADM, and Marathon Petroleum Corp. MPC.

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

Zacks Investment Research
Zacks Investment Research


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.

Zacks Investment Research
Zacks Investment Research


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.

Zacks Investment Research
Zacks Investment Research


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.

Zacks Investment Research
Zacks Investment Research


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).

Zacks Investment Research
Zacks Investment Research


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.

Zacks Investment Research
Zacks Investment Research


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%.

Zacks Investment Research
Zacks Investment Research


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.

Zacks Investment Research
Zacks Investment Research


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.

Zacks Investment Research
Zacks Investment Research


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
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, Archer Daniels Midland ADM, and Marathon Petroleum Corp. MPC – 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Archer Daniels Midland Company (ADM) : Free Stock Analysis Report

Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report

Elevance Health, Inc. (ELV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research