Seeking Stability? 3 Top-Ranked Large-Caps to Buy

Large-cap stocks are found in almost every portfolio. They are well-established, have more analyst coverage, and frequently pay dividends, all undeniably positive benefits that make them so popular among investors.

Of course, their steady nature may not appeal to all, with some preferring small-caps’ explosive growth characteristics.

Still, the decreased volatility large-caps possess is well worth the trade-off in the eyes of more conservative investors.

For those seeking large-cap exposure, three stocks – Applied Materials AMAT, JPMorgan Chase & Co. JPM, and PACCAR PCAR – have all seen their near-term outlooks shift positively. Let’s take a closer look at a few characteristics of each.

Applied Materials

Applied Materials provides manufacturing equipment, services, and software to the semiconductor, display, and other related industries. The stock is a Zacks Rank #2 (Buy), with earnings expectations increasing nicely across all timeframes.

AMAT has been a consistent earnings performer, exceeding both consensus earnings and revenue expectations in five consecutive quarters. Just in its latest release, the company delivered a 10% EPS beat paired with a 4.4% revenue surprise.

JPMorgan Chase & Co.

JPMorgan Chase & Co., a current Zacks Rank #1 (Strong Buy), is one of the largest financial service firms in the world. Analysts have raised their earnings expectations across the board.

JPM shares could interest those with a preference for income, currently yielding a solid 2.7% annually. And the company has been committed to increasingly rewarding shareholders, boasting an 8% five-year annualized dividend growth rate.


PACCAR Inc. is a global leader in designing, manufacturing, and customer support for high-quality premium trucks. The company’s earnings outlook has improved in a big way, landing it into the highly-coveted Zacks Rank #1 (Strong Buy).

The company is forecasted to witness notable growth in its current year, with the Zacks Consensus EPS Estimate of $8.54 implying 50% growth paired with a 20% revenue bump. Still, it’s worth noting that growth cools in FY24, with earnings and revenue forecasted to retreat by 20% and 9%, respectively.

In addition, the company’s 29.8% return on equity (ROE) is worthy of a highlight, reflecting a higher efficiency level in generating profits from existing assets relative to peers.

Bottom Line

Large caps are an everyday staple in every portfolio, as their stable nature and successful track records are impossible to ignore.

And for those seeking large-caps sporting improved earnings outlooks, all three above – Applied Materials AMAT, JPMorgan Chase & Co. JPM, and PACCAR PCAR – precisely fit the criteria.
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

PACCAR Inc. (PCAR): Free Stock Analysis Report

Applied Materials, Inc. (AMAT): Free Stock Analysis Report

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This article originally appeared on Zacks

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