Balancing Act: The Ultimate Guide To Large-Cap Growth Stocks With Low Risk

The stock market has rebounded from a weak start to the year, with the benchmark S&P 500 index rising by over 1.8% over the past five days. The tech-focused Nasdaq Composite Index has fared better as the tech rally resumes momentum, gaining over 3% in the second trading week of 2024.

As the inflation levels slow, the Federal Reserve is poised to begin cutting interest rates from March, which should boost equities. According to the FedWatch tool, the federal funds futures forecast a 79% probability of a rate cut in March. The declining borrowing costs should allow growth stocks to gain momentum in the upcoming months. 

With lingering recession concerns and geopolitical tensions, investing in large-cap growth stocks can allow investors to capitalize on the expected bull run without assuming too much risk amid the tumultuous market backdrop.

Don’t Miss:

• Investing in real estate just got a whole lot simpler. This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• Warren Buffett once said, "If you don’t find a way to make money while you sleep, you will work until you die." Here are three high-yield investments to add significant income to your portfolio.
• Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to high-yield real estate notes that pay a fixed 7.5% to 9%.

Microsoft Corp.

Microsoft Corp. MSFT is on track to become the world's largest company in terms of market cap, as its shares rose by over 5% last week to hit a market capitalization of $2.89 trillion, surpassing Apple Inc.'s AAPL $2.87 trillion market cap. 

Microsoft's strategic pivot toward artificial intelligence (AI) drove the tech behemoth's growth over the past year, as its stake in OpenAI paid off tremendously.

“With co-pilots, we are making the age of AI real for people and businesses everywhere,” Microsoft Chairman and CEO Satya Nadella said in an earnings release. “We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers."

Microsoft acquired Activision Blizzard Inc. in a historic merger, allowing the former to become the third-largest gaming company in terms of revenue. Wall Street analysts expect Microsoft's revenue to rise by over 14% year over year to $243.8 billion in fiscal 2024. In addition, the consensus annual earnings per share (EPS) estimate of $11.24 indicates an 11.6% improvement year over year. 

Piper Sandler has an Overweight rating on Microsoft stock with a price target of $455, indicating a potential upside of over 17%. 

Eli Lilly and Co.

Eli Lilly and Co. LLY, one of the largest pharmaceutical companies in the U.S., recently made headlines as its weight-loss drug Zepbound went viral shortly after its launch in November. The weekly prescription demand for Zepbound crossed 25,000 per week by the end of December, surpassing the current supply level for the drug. 

Start generating passive income through real estate

Check out these featured investments from Benzinga's Real Estate Offerings Screener.

Amid supply shortage concerns, Eli Lilly plans to build a new factory in Germany while expanding its facility in North Carolina. 

Analysts expect Eli Lilly's financials to improve significantly as the demand for Zepbound remains strong. The consensus revenue estimate of $8.5 billion for the fiscal first quarter ending in March indicates a 22.1% rise year over year. The company's EPS is expected to increase by over 54% year over year to $2.51 in the ongoing quarter.

Shares of Eli Lilly have been one of the best-performing pharma stocks over the past year, surging by over 77%.

Nvidia Corp.

Nvidia Corp. NVDA has been the best-performing Magnificent Seven stock with its shares rising by more than 220% over the past year. The relatively new chip manufacturer made its name by capitalizing on the AI boom, designing chips catering to AI-related tasks. 

Nvidia's chips hold an 85% market share in the artificial intelligence sector, making it the industry leader with a substantial competitive advantage. Shares of Nvidia have risen by nearly 10.5% so far this year. 

As the AI boom gains traction, Nvidia is expected to remain one of the fastest-growing companies in the near term. The company's dominant market position has allowed it to maintain robust demand in international markets as well — China keeps buying Nvidia chips despite growing geopolitical tensions with the U.S. 

Wall Street analysts expect Nvidia's revenue to rise 231.8% year over year to $20.08 billion in the fiscal 2024 fourth quarter ending in January. In addition, the consensus EPS estimate of $4.5 for the current quarter indicates a 411.4% rise from the same period last year.

Read Next:

• Elon Musk may be adding landlord to his list of titles. Here’s how to join him in his latest venture with as little as $100.
• Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Jeff Bezos gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.