At Zacks, we evaluate and provide information on numerous types of stocks throughout the market in order to present variety to investors. Some investors prefer to maximize value by investing in smaller companies due to potential growth opportunities, while others prefer companies that possess a greater market cap and can provide a safer, more consistent investment.
Large market cap stocks usually classify as a much more reliable investment because of the fact that they control a large portion of their given industry, and fortunately, companies with a larger market cap have performed well throughout 2017.
Investors can utilize the Zacks Rank, as well as our Style Scores system, to explore many solid large market cap stocks trading on the market today. Check out these five to consider right now:
1. Caterpillar Inc. (CAT)
Caterpillar Inc. is an American corporation which focuses on designing, manufacturing, and selling machinery, engines and various financial products to customers around the world. Caterpillar possesses a large market cap of around $62 billion and falls into an industry that ranks in the top 36% of the Zacks Industry Rank.
Additionally, Caterpillar pays a respectable dividend of 2.91%, which compares favorably to industry average of 0.75%. This year, Caterpillar is expecting a 2% rise in revenues, and EPS are projected to increase by 10%. Also, Caterpillar currently stands at a Zacks Rank #1 (Strong Buy) due to the strong earnings estimate revision activity we have seen.
2. Intel Corporation (INTC)
Intel Corporation is an American technology company that supplies computer chip processors to computer manufacturers such as HP, Dell, and Apple. Intel possesses a market cap of close to $170 billion, and its industry ranks in the top 23% of the Zacks Industry Rank.
Intel ranks highly within its sector since it produces a 21.48% return on equity compared to the industry average of 7.39%. Zacks has given INTC an “A” for Value and Growth in our Style Scores system, which means that Intel holds a strong value for its current price—as well as potential growth prospects. Furthermore, Intel pays a strong 3.04% dividend to stockholders. INTC currently sports a Zacks Rank #2 (Buy).
3. Marriott International (MAR)
Marriott International is a company that operates numerous hotels including Marriott, The Ritz-Carlton, Renaissance, and Courtyard. Marriott International owns over 6,000 properties which allow it to offer premium rates to customers in an extremely competitive industry.
Thus, Marriott’s large market share of close to $40 billion allows it to hold a competitive advantage against its competitors. Marriott stock is a dependable purchase with growth prospects, as the company projects room additions of up to 6% in 2017. MAR is currently a Zacks Rank #1 (Strong Buy).
4. Best Buy Co. Inc. (BBY)
Best Buy Company is a business that focuses on selling computers, electronics, appliances and various home office products. Best Buy’s industry falls into the top 1% of the Zacks Industry Rank, and the company bests its industry peers in key categories like return on equity; the company has posted a 26.81% RoE compared to an industry average of 6.76%.
BBY has also outperformed other stocks in the industry, gaining more than 98% compared to the average of 62% over the past year. Best Buy scored an “A” for Value and Momentum in our Style Scores system, which means this stock has the potential to continue its surge. Best Buy is also a Zacks Rank #1 (Strong Buy).
5. Deere & Company (DE)
Deere & Company is one of the world’s leading producers in agricultural, construction, and commercial equipment. Deere & Company’s large market share of around $40 billion has placed the company in a strong position in its industry, which currently sits in the top 5% of the Zacks Industry Rank.
Deere & Company’s projected sale growths of 8.85% is well above the industry average of 0.88%, and the company projects equipment sales to rise in the third-quarter of 2017 by 18%. Deere & Company received a Zacks Rank #1 (Strong Buy) due to its control of the industry and projected increase in sales, which have caused analysts to revise their earnings estimates upward.
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