Mega Cap companies are those with a market capitalization of $200 billion or more. Most of these companies boast well-established business models, strong brand power, and global operations. Due to their sheer size, mega cap companies offer relatively higher protection from broader market fluctuations and are considered safe bets during uncertain macroeconomic times.
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A mega cap company usually offers regular dividend payments and has the potential to generate notable capital gains. Investors can help secure their portfolio returns by investing at least a portion of their funds into mega cap stocks.
Leveraging TipRanks’ Stock Screener, we have identified three mega cap stocks with Strong Buy consensus ratings from analysts. Furthermore, each stock boasts an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks, indicating they are highly likely to outperform market expectations. The Smart Score evaluates eight factors to gauge a stock’s potential to outperform the broader market.
Here are this week’s stocks:
Philip Morris (PM) – Philip Morris is a multinational tobacco company that sells cigarettes, smoke-free products, and related devices and accessories. The stock offers an above-industry-average dividend yield of 3.36% and a Smart Score of Nine. Over the last three months, nine Wall Street analysts covering PM stock have rated it a Buy, while one analyst has rated it a Hold. Combined, their 12-month average Philip Morris price target indicates an upside of 25.4%. PM stock has surged 33.3% so far this year.
SAP SE (SAP) – Germany-based SAP SE is one of the world’s largest enterprise resource planning (ERP) companies. The stock carries a Smart Score of “Perfect 10.” Over the past three months, five Wall Street analysts covering SAP stock have rated it a Buy, while one analyst rated the stock a Hold. Together, their 12-month average SAP AG price target indicates an upside of 20%. Year-to-date, SAP stock has gained 15.4%.
Coca-Cola (KO) – Coca-Cola is a global beverage giant, selling soft drinks and other non-alcoholic beverages. The stock offers an attractive dividend yield of 2.88% and has a Smart Score of Nine. In the last three months, all 17 Wall Street analysts covering KO stock have rated it a Strong Buy. Together, their 12-month average Coca-Cola price target indicates an upside of nearly 18%. KO stock is up 10.9% so far this year.
What Is TipRanks’ Smart Portfolio?
The TipRanks Smart Portfolio offers insights into the stocks you own and enables comprehensive portfolio analysis. It also allows you to compare your portfolio with those of other investors, including top performers. Interestingly, the tool has been upgraded to provide AI-generated explanations for each holding’s stock movements and to track all assets on your watchlist.
Like all TipRanks tools, Smart Portfolio is easy to use and helps you make data-driven investment decisions.