It’s always good to have large-cap stocks in a portfolio. These companies are some of the largest and most well-known stocks on the market. That makes finding the best large-cap stocks a worthwhile exercise.
Of course, in this market, it can be challenging to identify the best large-cap stocks. With the Dow Jones Industrial Average down more than 16% and other major indices down more than that, you just can’t throw darts at a board to find your winners.
For this list, I use my portfolio classifier Exclusive tool to find the best large-cap stocks to buy and hold. Portfolio Grader assigns a letter grade to stocks based on fundamentals such as sales growth and operating margin. And its factors in buying pressure and other quantitative factors that help predict a stock’s future performance.
Here are seven large-cap stocks to buy and hold that earn strong ratings from the portfolio classifier.
|jnj||Johnson and Johnson||$168.71|
Elevation Health (ELV)
Formerly known as Anthem, Health Lift (NYSE:ELV) is the largest for-profit company offering health insurance under the Blue Cross Blue Shield brand. Overall, it’s one of the best-rated large-cap stocks to hold for the long term.
Although still moving higher, as the market pulls back, ELV shares are trading at a favorable valuation (15x future earnings). It can easily sustain this earnings multiple as it is expected to continue to grow its earnings per share by around 12.8% next year, and around 13.6% in 2024.
Elevance could continue to rise, along with an increase in EPS. Your current 1.05% forward yield may seem small, but over time, it could grow to be mighty. Its low payout ratio (15.7%) leaves ample room for dividend growth.
This stock gets an “A” rating on my portfolio classifier.
With around 10,500 stores and clubs worldwide, walmart (NYSE:WMT) is one of the largest retailers on the planet. It is one of the most successful.
WMT shares are down 7% for the year. That’s nothing to get excited about until you consider that competitor Goal (NYSE:TGT) is down 32% so far this year. Walmart’s biggest competitor in the e-commerce space, Amazon (NASDAQ:AMZN) has fallen by 33% in the year.
After a rough first quarter in which Walmart missed expectations and lowered its guidance for the full year, Walmart is enjoying a bit of a resurgence. Second quarter results were better than expected, beating expectations on both the top and bottom lines.
Walmart reaffirmed its outlook for the rest of the year, which should give investors some confidence.
Walmart stock is rated “B” on the Portfolio qualifier.
If you want to talk about large-cap stocks to buy and hold, they’re not much bigger than Apple (NASDAQ:AAPL), which has a market capitalization of $2.3 trillion.
The smartphone maker recently released its iPhone 14, smartly priced at $799, as well as new versions of its Airpods Pro and Apple Watch.
Apple is a great stock because it is a great company that continues to produce products that are in high demand. Apple has more than one 55% participation of the US smartphone market. Its annual launch of updated smartphones and other products has become a must-see event for fans of Wall Street and Apple alike.
Granted, AAPL stock has been a disappointment so far this year, down almost 19% in 2022, but the company is doing a credible job of managing expectations.
AAPL beat analysts’ expectations for both outperforming and underperforming results in the first and second quarters of fiscal 2022. For the third quarter, it beat expectations for earnings per share of $1.16 while posting EPS of $1.20 per share. action. And it barely beat revenue expectations of $82.97 billion, coming in at just $8.96 billion.
AAPL is expected to release its fiscal fourth quarter report on October 27 and if it reports strong iPhone 14 sales and an improved supply chain, then the sky is the limit for AAPL stock.
Apple gets a “B” grade on the portfolio classifier.
Raytheon Technologies (RTX)
defense company Raytheon Technologies (NYSE:RTX) is having a solid year in the scheme of things. While most of the market is in the red, defense conglomerates like Raytheon are managing to hold their own, and even gain a bit in share price.
Raytheon, the parent of Collins Aerospace and Pratt & Whitney, is a missile and defense manufacturer. was associated with Lockheed Martin (NYSE:LMT) to make Javelin anti-tank missiles that Ukraine uses to defend itself against Russian forces. It also makes the Stinger anti-aircraft missiles that Ukraine is using in the conflict.
Unfortunately, the conflict in Ukraine does not seem to abate. Russia is massing more troops on the border and calling up reserves to bolster its war effort, and Ukraine is digging in for the long haul. That will make the need for military equipment high, and will likely keep contractors like Raytheon busy.
RTX stock is rated “B” on the portfolio classifier.
Qualcomm (NASDAQ:QCOM) designs and manufactures digital wireless telecommunications products, including circuits and system software for wireless devices.
That puts QCOM in an enviable position as the nation converts to 5G technology. Qualcomm actually owns several patents that are critical to manufacturing the semiconductors that make 5G wireless technology possible.
The fifth generation mobile network is a great place to invest. It provides multi-gigabit higher peak data speeds and better reliability to give mobile users the same streaming experience as someone using an ultra-fast wired connection.
That has many great applications, including for the growth of smart cities, improved video streaming, better virtual meetings and medical appointments, and even improved experiences for virtual reality, sports betting, and gaming.
Not surprisingly, QCOM’s stock is consistently killing it on its earnings reports. For the third quarter, revenue of $10.93 billion beat expectations of $10.85 billion, and earnings per share of $2.96 was better than expectations of $2.87.
QCOM shares have a promising future and are rated “B” on the Portfolio qualifier.
Free Market (MELI)
when you think of free market (NASDAQ:MELI), you can probably think of Amazon, but in Latin America.
MercadoLibre operates the largest e-commerce and digital payment systems in Latin America, operating in 18 countries. Its platforms include Mercado Libre, Mercado Pago (a digital payment platform), and a Mercado credit service.
Like Amazon, MercadoLibre has had a difficult 2022, almost 40% less. Even factoring in those losses, MELI shares have a five-year growth of 248%, which is much better than AMZN shares’ 138% growth over the same period.
Even though stocks are down this year, revenue continues to grow at an exceptional pace. The second quarter earnings report showed revenue of $2.6 billion, an increase of 52.5% from the same quarter a year ago. MELI also outperformed on both bottom line and bottom line, with analysts only expecting revenue of $2.51 billion. EPS of $2.43 was much better than the $1.93 expected by Street.
With the share price falling sharply but revenue continuing to rise, MELI looks like a compelling buy. He has a grade of “B” in the Portfolio qualifier.
Johnson & Johnson (JNJ)
Founded in 1886, Johnson and Johnson (NYSE:jnj) manufactures consumer packaged goods, pharmaceuticals, medical devices and more.
All of those products are must-haves for consumers, which means that even when inflation rises and discretionary income shrinks, people will need to buy JNJ products first. And that’s just one of the reasons why JNJ, with a market cap of $441 billion, is outperforming the market. JNJ is down just 2% in 2022.
Earnings are also strong, with third-quarter revenue of $23.79 billion better than analysts’ expectations of $23.43 billion. EPS of $2.55 was 6 cents per share better than analysts’ expectations.
On top of that, JNJ offers a solid dividend yield of 2.7%. That helps push JNJ to a “B” rating in the portfolio classifier.
At the date of publication, Louis Navellier did not hold (either directly or indirectly) any position in the securities mentioned in this article.
As of the date of publication, the InvestorPlace research staff member primarily responsible for this article owned AAPL stock.