What are the mega cap stocks to buy?
Among the standout mega-cap stocks that look poised for further growth are Novo Nordisk (NVO), Walmart (WMT), and Oracle (ORCL). These titans boast massive market capitalizations, healthy cash flows, and a proven track record of dividend growth.
Among the standout mega-cap stocks that look poised for further growth are Novo Nordisk (NVO), Walmart (WMT), and Oracle (ORCL). These titans boast massive market capitalizations, healthy cash flows, and a proven track record of dividend growth.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Abbott India | 25725.10 |
| 2. | Adani Total Gas | 923.15 |
| 3. | Alkem Lab | 4704.40 |
| 4. | APL Apollo Tubes | 1568.50 |
Bank of America strategist Michael Hartnett coined the term "Magnificent 7" stocks for the most dominant tech companies. The group is made up of mega-cap stocks Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA).
Big-Tech Behemoths Hold Sway Over Indices
The mega-cap leaders dubbed the “Magnificent Seven” have outperformed the stock market for several years. However, 2023 was quite impressive for the seven tech-focused US companies—Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.
- MSFT. MICROSOFT CORP. ...
- GOOGL. ALPHABET INC-CL A. ...
- SPY. SPDR S&P 500 ETF TRUST. ...
- GE. GENERAL ELECTRIC CO. ...
- BAC. BANK OF AMERICA CORP. ...
- CBRE. CBRE GROUP INC - A. ...
- OXY. OCCIDENTAL PETROLEUM CORP. ...
- V. VISA INC-CLASS A SHARES.
| No. | Symbol | Company Name |
|---|---|---|
| 3 | GOOGL | Alphabet Inc. |
| 4 | NVDA | NVIDIA Corporation |
| 5 | AMZN | Amazon.com, Inc. |
| 6 | META | Meta Platforms, Inc. |
| Stock Name | Sub-Sector | PE Ratio |
|---|---|---|
| Reliance Industries Ltd | Oil & Gas – Refining & Marketing | 26.20 |
| Tata Consultancy Services Ltd | IT Services & Consulting | 31.69 |
| HDFC Bank Ltd | Private Banks | 27.61 |
| ICICI Bank Ltd | Private Banks | 20.28 |
Lower risk: Compared to mid-cap and small-cap funds, large-cap funds invest in well-established companies with larger market capitalizations. These companies tend to be more financially stable and resilient to market fluctuations, offering a lower overall risk profile.
Large-cap stocks are generally considered to be safer investments than their mid- and small-cap stock counterparts because they are larger, more established companies with a proven track record. Some of the biggest names in business are large-cap stocks – Apple, Microsoft and Alphabet, for example.
What is an example of a mega-cap stock?
Mega cap is a term used for a publicly-traded company with a market capitalization of over $200 billion. Famous mega cap firms include Apple, Amazon, Microsoft, Meta, Alphabet, & Nvidia. Investment in mega cap firms ensures guaranteed profits with low risk even in a volatile market.
Amazon Stock May Be The Cheapest Mega Cap Right Now (NASDAQ:AMZN) | Seeking Alpha.
mega-cap: market value of $200 billion or more; large-cap: market value between $10 billion and $200 billion; mid-cap: market value between $2 billion and $10 billion; small-cap: market value between $250 million and $2 billion; and.
- Intuit Inc. (NASDAQ:INTU) Number of Q4 2023 Hedge Fund Shareholders: 75. ...
- Tesla, Inc. (NASDAQ:TSLA) ...
- Booking Holdings Inc. (NASDAQ:BKNG) ...
- Netflix, Inc. (NASDAQ:NFLX) ...
- Broadcom Inc. (NASDAQ:AVGO) ...
- Micron Technology, Inc. (NASDAQ:MU) ...
- Adobe Inc. (NASDAQ:ADBE) ...
- Apple Inc. (NASDAQ:AAPL)
For those out of the loop, the “Magnificent 7” stocks — Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) — drove the S&P 500 in 2023 and account for about half of the weighting of the Nasdaq index.
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| Abbott Laboratories (ABT) | Health care | 1.9% |
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
| T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
You can invest in the stock market
This means you get a decent return with low-risk, especially short-term, government bonds right now, even for long-term retirement savings,” says Escamilla. Exchange traded funds (ETFs), which are typically a mix of stocks and bonds can also add diversification to your portfolio.
If you don't, then dollar-cost average into index funds.” Buffett has long advised most investors to use index funds to invest in the market, rather than trying to pick individual stocks. By picking individual stocks you're working against the pros who have extensive intelligence on companies.
- A family office. A family office is a unique wealth management firm that caters to billionaires and the ultra-wealthy. ...
- A prime brokerage. ...
- Self-directed brokerage account. ...
- Private placements. ...
- Hedge funds.
| Stock | Expected Change in Stock Price* |
|---|---|
| Nvidia Corp. (ticker: NVDA) | 6.1% |
| Alphabet Inc. (GOOG, GOOGL) | 10.1% |
| Meta Platforms Inc. (META) | -1.9% |
| JPMorgan Chase & Co. (JPM) | -3.4% |
What is the difference between large-cap and mega-cap stocks?
Mega-cap companies have a market value above $200 billion. Large-cap companies have a market value between $10 billion and $200 billion. Mid-cap companies have a market value between $2 billion and $10 billion. Small-cap companies have a market value between $250 million and $2 billion.
The large cap stocks are the stocks of top 100 companies, ranked according to their market capitalisation. The average one-year return given by large cap mutual funds stood at 16.15 percent as on December 21, 2023, reveals the MorningStar data.
However, the returns are lower compared to mid-cap or small-cap funds. In the long term (around five to seven years), these funds tend to offer good capital appreciation.
Reliance Industries, a conglomerate holding company, is the largest company in India by market cap. It operates in various sectors, including energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
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