Investing

Grab These 5 Flourishing Giants to Strengthen Your Portfolio

Tesla vehicles
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Wall Street has seen a bull run in 2023 after a highly disappointing 2022. Year to date, all three major stock indexes are in positive territory. In fact, the S&P 500 and the Nasdaq Composite have witnessed an impressive rally.

However, in the past one and a half months, volatility has returned to U.S. stock markets. The Dow, the S&P 500 and the Nasdaq Composite have exhibited negative returns during this period. Despite facing volatility, the long-term trend of U.S. stock markets remains bullish.

Meanwhile, stock prices of a handful of U.S. corporate bigwigs have flourished in the past month. The primary reason for the stock prices of these companies to thrive is their strong earnings results in the last reported quarter and solid guidance. Investment in these stocks with a favorable Zacks Rank should be fruitful for market participants.

Our Top Picks

We have narrowed our search to five large-cap (market capital > $10 billion) stocks that have provided solid returns in the past month. These stocks have strong long-term potential and have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Splunk Inc. SPLK is witnessing significant customer additions and multiple project wins in the public and private sectors driven by its enterprise scale and unified product portfolio. SPLK teamed up with Microsoft to enable customers to migrate, modernize and enhance their business environment with comprehensive cloud and hybrid visibility on a large scale.

Splunk is committed to enhancing its core platform and premium products with advanced AI capabilities. SPLK AI encompasses a range of AI-powered solutions that seamlessly blend automation with human input.

Zacks Rank #1 Splunk has an expected revenue and earnings growth rate of 29.9% and 39.8%, respectively, for the current year (ending January 2024). The Zacks Consensus Estimate for current-year earnings has improved 31.9% over the last 30 days. The stock price of SPLK has jumped 21.3% in the past month.

Dell Technologies Inc. DELL designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. DELL operates through two segments, Infrastructure Solutions Group and Client Solutions Group.

Zacks Rank #1 Dell Technologies has an expected revenue and earnings growth rate of 4.8% and 8.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 11.6% over the last 30 days. The stock price of DELL has soared 22.6% in the past month.

Tesla Inc. TSLA witnessed record production, deliveries and revenues in the last reported quarter. We expect deliveries to see an annualized growth of around 36% in 2023. Production ramp-up at Gigafactory 4 and 5 and the introduction of new models, including Semi and Cybertruck, are set to support long-term delivery growth of TSLA.

We anticipate automotive revenues to rise more than 18% this year. Additionally, Tesla’s energy generation and storage revenue outlook is promising. Falling debt levels and the solid potential of TSLA’s charging business are other positives.

Zacks Rank #2 Tesla has an expected revenue and earnings growth rate of 25.6% and 34.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the last 60 days. The stock price of TSLA has climbed 13.6% in the past month.

Apollo Global Management Inc. APO is a private equity firm specializing in investments in credit, private equity and real estate markets. APO provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors.

APO’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, middle market, growth capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions.

Zacks Rank#2 Apollo Global Management has an expected revenue and earnings growth rate of 22.5% and 28.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 60.5% over the last 60 days. The stock price of APO has surged 12.9% in the past month.

Vistra Corp. VST operates as an integrated retail electricity and power generation company. VST operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. VST is involved in electricity generation, wholesale energy purchases and sales, commodity risk management, fuel production, and fuel logistics management activities. VST retails electricity and natural gas to residential, commercial, and industrial customers across 20 states in the United States and the District of Columbia.

Zacks Rank #2 Vistra has an expected revenue and earnings growth rate of 46.2% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 30 days. The stock price of VST has advanced 7.8% in the past month.
Dell Technologies Inc. (DELL): Free Stock Analysis Report

Tesla, Inc. (TSLA): Free Stock Analysis Report

Apollo Global Management Inc. (APO): Free Stock Analysis Report

Splunk Inc. (SPLK): Free Stock Analysis Report

Vistra Corp. (VST): Free Stock Analysis Report

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Zacks Investment Research

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