Investing

The Next 15 Companies Set to Join the $100 Billion Market Cap Club

Thermo Fisher: Growth and a Monster Stock Chart

Thermo Fisher Scientific Inc. (NYSE: TMO) is valued at almost $95 billion, and its shares have hit an all-time high after rising and rising for more than the past five years. Maybe the shares need a correction, or maybe investors simply would like to see a correction for a better entry point, but the stock being valued at 21 times expected current year earnings isn’t likely to scare too many investors away when they consider an expected 10% earnings growth to continue.

Broadcom: Can the Chip Giant Get Out of Its Own Way?

Broadcom Inc. (NASDAQ: AVGO) also has previously been a member of the $100 billion market cap club, but its efforts to acquire Qualcomm and the current effort to acquire CA Technologies for almost $19 billion have chiseled away at its value. Broadcom investors are paying just over 10 times expected earnings, so there is some friction taking place between growth and value for one of the top global semiconductor players.

Schlumberger: Elusive Earnings Despite Rising Oil Prices

Schlumberger N.V. (NYSE: SLB) is the king of oil and gas services players, and its market cap of $92 billion (currently at a $66.50 share price) would easily be over $100 billion if the stock moved back anywhere close to its 52-week high of $80.35. Schlumberger and the rest of the oil services stocks have had a harder time getting earnings to rise with the price of oil, and that earnings trajectory in the next year or two with higher energy prices likely will determine whether Schlumberger gets to recapture the $100 billion market cap. That said, its current value is 33 times expected current year earnings.

Lockheed Martin: Bombs Away!

Lockheed Martin Corp. (NYSE: LMT) is one of the top U.S. defense companies, and its market cap of $90 billion has been above the $100 billion mark before. It’s also valued at less than 19 times earnings and is expected to grow earnings by 10% or more in the following year. If its stock gets anywhere close to the all-time high of $363.00 (compared with about $317 now) it will be back in the $100 billion market cap club.

Goldman Sachs and Morgan Stanley: The Non-Bank Banks

Goldman Sachs Group Inc. (NYSE: GS) is worth $89 billion and peer Morgan Stanley (NYSE: MS) is worth $87 billion. Both of these bank holding companies are hardly considered banking companies these days, but they both are among the top five for brokerage, trading, advisory and M&A services. All that these companies have to do is to continue rallying closer to their 52-week highs and they will be challenging the $100 billion market club again.

American Express: Please Keep Charging Away on Your Cards!

American Express Co. (NYSE: AXP) issues its own cards and caters to those with higher credit scores than some rival credit card issuers. The company’s value of $88 billion is based on a $102.70 share price, and its shares would have to rally around 13% to reach the $100 billion mark. That would be closer to a $115 share price, although the consensus analyst target price for just one-year out is over $111.

U.S. Bancorp: The Big Bank Most People Don’t Know

U.S. Bancorp (NYSE: USB) is one of the top banks in America, but it is considered to be farther back on the list of money-center and super-regional banks. Warren Buffett’s Berkshire Hathaway is the second largest holder here, with a $5 billion stake. Trading at 13 times current year expected earnings, the current $53 share price is against a $57 consensus target price and compares with a 52-week high of $58.50. The $86.5 billion market value could be facing that $100 billion mark in the next two years if it just has average share price growth.

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