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:
Alibaba Group (BABA) – Alibaba is a Chinese e-commerce giant with advanced technological capabilities and a robust supply chain. The stock carries a dividend yield of 1.82% and a Smart Score of “Perfect 10.” Over the past three months, 13 Wall Street analysts covering BABA stock have rated it a Buy, while one analyst rated the stock a Hold. Combined, their 12-month average Alibaba price target indicates an upside of nearly 51%. BABA stock is up 30.4% year-to-date.
Home Depot (HD) – Home Depot is an American big-box retailer specializing in home improvement and home furnishing products. The stock carries a dividend yield of 2.48% and a Smart Score of eight. In the last three months, 18 Wall Street analysts covering HD stock have rated it a Buy, while six have rated it a Hold. Together, their 12-month average Home Depot price target indicates an upside of about 15.4%. Unfortunately, HD stock has lost 3.3% so far this year.
Alphabet (GOOGL) – Alphabet is one of the world’s largest technology companies, boasting a well-established search business, a growing advertising business, and a lucrative cloud computing unit. The stock offers a dividend yield of 0.47% and holds a Smart Score of eight. Over the past three months, 29 Wall Street analysts covering GOOGL stock rated it a Buy, while nine analysts assigned a Hold rating. Together, their 12-month average Alphabet price target indicates an upside of nearly 12%. Year-to-date, GOOGL stock has lost 4.9%.
What Is TipRanks’ Smart Portfolio?
The TipRanks Smart Portfolio offers insights into the stocks you own and enables a 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.