Best Large Cap Stocks Right Now

Think you’re ready to start comparing investments? Here are a few of the top large cap stocks that investors are keeping their eyes on right now.

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Contributor, Benzinga
March 2, 2024

Starbucks (NASDAQ:SBUX)

Starbucks is one of the most widely recognized restaurant brands in the world, operating nearly 34,000 stores across more than 80 countries as of the end of fiscal 2021. The firm operates in three segments: North America, international markets, and channel development (grocery and ready-to-drink beverage). The coffee chain generates revenue from company-operated stores, royalties, sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee sales, and single-serve products.

$93.13
-1.77[-1.87%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open94.450Close93.160
Vol / Avg.7.995M / 8.848MMkt Cap105.444B
Day Range92.910 - 94.57052 Wk Range89.210 - 115.480

Exxon Mobil (NYSE:XOM)

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2021, it produced 2.3 million barrels of liquids and 8.5 billion cubic feet of natural gas per day. At the end of 2021, reserves were 18.5 billion barrels of oil equivalent, 66% of which were liquids. The company is the world’s largest refiner with a total global refining capacity of 4.6 million barrels of oil per day and one of the world’s largest manufacturers of commodity and specialty chemicals.

$105.8845
1.3645[1.31%]
Last update: 6:46PM (Delayed 15-Minutes)
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Open105.720Close105.840
Vol / Avg.18.460M / 20.383MMkt Cap420.467B
Day Range105.375 - 106.39052 Wk Range95.770 - 120.700

Taiwan Semiconductor (NYSE:TSM)

Taiwan Semiconductor Manufacturing Co. is the world’s largest dedicated chip foundry, with over 57% market share in 2021 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC’s scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

$135.10
6.43[5.00%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open130.130Close133.900
Vol / Avg.24.393M / 12.120MMkt Cap700.685B
Day Range130.100 - 136.65052 Wk Range81.210 - 135.170

McDonald's (NYSE:MCD)

McDonald’s Corporation is a global restaurant company. It owns and operates more than 36,000 restaurants in over 100 countries around the world. Many of its restaurants provide a drive-thru and delivery service for its customers.

The restaurant stock has a market cap of $170 billion and has an EPS of $6.33. It has an annual dividend yield of $5.16 per share. McDonald’s has high liquidity and trades over 1.8 million shares per day. It generated revenue of $21 billion in 2019.

$290.30
-1.98[-0.68%]
Last update: 4:58PM (Delayed 15-Minutes)
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Open291.390Close290.730
Vol / Avg.3.029M / 3.127MMkt Cap209.612B
Day Range289.530 - 292.67052 Wk Range245.730 - 302.390

NVIDIA (NASDAQ:NVDA)

Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms. The firm’s chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm’s products.

$826.50
35.38[4.47%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open800.000Close822.790
Vol / Avg.47.914M / 46.197MMkt Cap2.066T
Day Range794.350 - 823.00052 Wk Range222.970 - 823.940

Walt Disney (NYSE:DIS)

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney recently reorganized into four segments with one new segment: direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+ and the Disney SVOD service. The plan also combines two segments, parks and resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.

$111.75
0.17[0.15%]
Last update: 7:25PM (Delayed 15-Minutes)
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Open111.440Close111.950
Vol / Avg.7.242M / 12.649MMkt Cap204.983B
Day Range111.030 - 112.14552 Wk Range78.731 - 112.920

American Tower (NYSE:AMT)

American Tower owns and operates more than 220,000 cell towers throughout the U.S., Asia, Latin America, Europe, and Africa. It also owns and/or operates 25 data centers in eight U.S. markets after acquiring CoreSite. On its towers, the company has a very concentrated customer base, with most revenue in each market being generated by just the top few mobile carriers. The company operates more than 40,000 towers in the U.S., which accounted for more than half of its total revenue in 2021. Outside the U.S., American Tower’s greatest presence is in India and Brazil, where it operates roughly 75,000 and 19,000 towers, respectively. American Tower operates as a real estate investment trust.

$201.76
2.90[1.46%]
Last update: 4:20PM (Delayed 15-Minutes)
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Open198.900Close201.760
Vol / Avg.3.473M / 2.292MMkt Cap94.053B
Day Range196.150 - 202.05052 Wk Range154.580 - 219.100

Eli Lilly and Co (NYSE:LLY)

Eli Lilly is a drug firm with a focus on neuroscience, endocrinology, cancer, and immunology. Lilly’s key products include Verzenio for cancer; Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology.

$784.80
31.12[4.13%]
Last update: 7:58PM (Delayed 15-Minutes)
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Open769.020Close782.120
Vol / Avg.4.248M / 3.224MMkt Cap745.689B
Day Range764.130 - 784.08052 Wk Range309.200 - 794.470

Samsung Electronics Co (OTCPK:SSNLF)

Samsung Electronics is a diversified electronics conglomerate that manufactures and sells a wide range of products, including smartphones, semiconductor chips, printers, home appliances, medical equipment, and telecom network equipment. About half of its profit is generated from semiconductor business, and a further 30%-35% is generated from its mobile handset business, although these percentages vary with the fortunes of each of these businesses. It is the largest smartphone and television manufacturer in the world, which helps provide a base demand for its component businesses, such as memory chips and displays, and is also the largest manufacturer of these globally.

Open-Close-
Vol / Avg.0 / -Mkt Cap-
Day Range- - -52 Wk Range49.253 - 54.958

Large-cap stocks are stocks issued by corporations that have major influence over the economy. The “cap” in large-cap refers to the company’s “market capitalization,” which is equal to the company’s current share price multiplied by its outstanding number of shares. As the name suggests, these stocks have very high market capitalizations — most of them have capitalizations well above $10 billion.

Though you won’t find many stocks under $5 when you shop for these stocks, they can add a layer of safety and stability to your profile. Our guide to them will help you understand a little more about what sets these companies apart from the rest. This is a good time to introduce you to a few ideas when it comes to large-cap investment opportunities. But, you shouldn’t focus only on large-cap stocks when there are other assets that can support them in your portfolio.

Quick Look at the Best Large Cap Stocks:

  • Starbucks
  • ExxonMobil
  • Taiwan Semiconductor Manufacturing Co.
  • McDonald's Corporation
  • Nvidia
  • Walt Disney
  • American Tower
  • Eli Lilly
  • Samsung Electronics

Overview: Large Cap Stocks

A large-cap stock is a stock with a market capitalization over $10 billion. The best-known companies in the United States all have them — and large-cap stocks make up around 90% of the total U.S. market. Some of the best examples of large cap stocks include:

  • Coca-Cola (NYSE: KO)
  • Walmart (NYSE: WMT)
  • Facebook (NASDAQ: FB)
  • Clorox (NYSE: CLX)

Notice a mix of companies that are rather popular and have a massive public image and firms that you may not have thought were all that valuable. Sure, companies need uniforms for their workers, but Cintas is a large cap stock? It is because the company has effectively cornered the market in this sector. Likewise, you may not have heard of Unilever, but they produce a massive range of home and beauty products you likely use. Even more shocking is Clorox. Most people reading this page have a Clorox product in their home, but it’s a large cap stock?

What to Look for in Large Cap Stocks

These stocks often have higher share prices, but they come with a number of benefits. Some of the biggest reasons why investors choose them include:

  • Stability: Companies that issue large-cap stocks are usually market leaders with very little price fluctuations. This makes them a safer investment when compared to penny stocks or stocks under $10.
  • Transparency: Large-cap stocks typically have very transparent earnings reports and corporate structures. You can almost always find information, analysis and expert opinions on these stocks without doing hours of research, making it very difficult to get involved in a scam or price manipulation.
  • Higher average trading volumes: Large-cap stocks have higher average daily trading volumes than mid-cap and small-cap stocks. This means that if you need to sell your investments, you’re much more likely to be able to unload your shares quickly.
  • Name recognition: Name recognition is a big part of investing. Investors tend to understand big name companies better, giving them a peace of mind they can’t get elsewhere.
  • Room to fluctuate: Large cap stocks have a bit of room to fluctuate. While you don’t want to allow an investment to bottom out completely, a loss of even $50 per share is not all that much when you’re considering large cap stocks—a figure that can be made up rather easily. Monitor your assets closely, but remember that you don’t need to panic at the first sign of trouble.
  • A fit with your trading strategy: Your trading strategy must match the large cap stocks you want to purchase. If they don’t fit in with your needs, you should move on.

Many large-cap stocks are also considered to be blue-chip stocks as well. A blue-chip stock is the stock of a company that has a long history of profitability, very little debt and an overall very consistent business in place. Blue chip stocks usually have high levels of diversification as well — if they have a rough quarter or year, their stock is less likely to see a drop in price.

Some investors are attracted to these stocks because the companies that issue them often have the stability and profit to offer consistent dividends. A dividend is a portion of a company’s profit that is paid out to shareholders. A company might issue dividends on an annual, monthly or quarterly basis, and the amount of money shareholders receive during each payment is directly dependent upon the number of shares of stock they hold. 

For example, if Company A is offering a dividend of $1 and you own 1,000 shares of the stock, you’ll receive $1,000 on the payment date. Though few companies are required to pay dividends, many large-cap stocks elect to. This is something that these companies do to benefit you, but they also engender a bit of goodwill that speaks to investors. Yes, you might be loyal to a blue chip stock because it pays dividends, but you must also research these stocks and make sure that they are still the most appropriate assets for your portfolio going forward.

If you find that certain assets are not performing well for you, you can reinvest that cash in other types of investments. Yes, you could pour your money back into large cap stocks, or you may want to look into ETFs, penny stocks, etc.

Best Online Brokers for Large Cap Stock

No matter if you’re purchasing thousands of dollars’ worth of large-cap stock or you’re browsing stocks under $20 to swing trade, you’ll need to place your buy or sell orders through a broker. A broker is a person or company that’s licensed to purchase or sell stocks and other securities on behalf of another person. Though most people think of the frantic brokers of Wall Street when they imagine a stockbroker, most brokerage firms now allow you to do all of your buying and selling online through a single platform.

Don’t already have a brokerage account? Consider a few of our favorites listed below. 

Unique Features of Large Cap Stocks

Large cap stocks are usually more expensive than mid- or small-cap stocks. Get the most out of your money by searching for these 3 features before you invest.

  • A high earnings per share value: A company’s earnings per share (EPS) value is equal to its current profit divided by the number of shares of stock outstanding. When you invest, be sure to select a stock with a solid, positive EPS — this indicates that the company is consistently profitable and isn’t paying out more money than it’s bringing in.  
  • Consistently met targets: Each quarter, analysts set a “consensus EPS” for every large-cap company. A consensus EPS is an expert estimation of what a company should announce as its EPS before its quarterly earnings report is released. When you shop for large cap stocks, look for companies that consistently meet or beat the consensus — this indicates that there are less likely to be hidden financial issues within the company.
  • A solid dividend yield: Instead of looking for large cap stocks that pay the highest dividends, search for ones with a solid dividend yield. A dividend yield is equal to a company’s annual dividend payout divided by its current share price. Dividend yields above 10% are usually considered to be riskier investments. 
  • Name recognition: Name recognition isn’t going to make you money, but it can help. Remember, there are some companies that are almost too big to fail, and their name recognition makes it easier for them to remain relevant and maintain their stock value. Balance name recognition with the items mentioned above to make wise investment decisions.
  • Easy to understand business model: Don’t invest in something you cannot understand. If the business model isn’t easy to understand, you may not be in possession of an asset that can perform over the long-term.

Considerations With Large Cap Stocks

Large cap stocks, like any asset, are not perfect. As a result, you need to take a look at things that could go wrong with large cap stocks. You cannot invest with fear, but you should invest with a bit of wisdom, understanding that things can change.

  • Stagnant growth: No stock cano grow forever, but you may find that some large cap stocks retain their massive market cap without continuing to grow into the future.
  • Mergers & acqusitions: While you will be paid for stocks you hold during a buyout or compensated during a merger, you may not be investing in the same stock anymore. As a result, you need to decide where to allocate those funds now that the original stock no longer exists.
  • Loss of market interest: It’s possible that a once proud and majestic large cap stock might fall by the wayside. For example, Enron was once a bastion of growth an opportunity, until the market ran for the hills when the company crumbled. Moreover, some businesses simply don’t last forever. Look at the status of Macy’s in the malls of the 80s and 90s versus where the company sits today.

Leveraging Your Portfolio With Large Cap Stocks

Many investors put their money into these stocks because they want to purchase securities that will safely hold their investment capital. While large-cap stocks are generally much more stable and see fewer price fluctuations than stocks from companies with smaller market capitalizations, they aren’t the only way to invest in the long term. 

In addition to these stocks, consider investing in a few total market or S&P 500 funds. These securities offer a higher level of diversification than buying individual large-cap stocks, which can better protect your investment.  

With companies like Apple and Amazon hitting the mythical trillion-dollar market capitalization in 2018, you may have considered getting in on some of the action. Large-cap companies have market caps of over $10 billion and include giants like Alphabet, Microsoft, and Intel. There are more options than you think.

Large-cap stocks are much less risky than small-cap and mid-cap stocks, but the stocks can still find modest regular gains.

Q

What are large-cap stocks?

A

Large cap stocks are shares in companies that have high market capitilizations.

Q

What are some large-cap stocks?

A

Some examples of large-cap stocks are coca-cola, Facebook, and Walmart.

Q

Are large-cap stocks risky?

A

Any investment carries some risk, but large-cap stocks are less risky than small or mid-cap stocks.

About Sarah Horvath

Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.