Large-Cap Stocks to Watch Before the End of 2021
It’s almost winter, and you know what that means for markets – holiday season! Many retail companies perform their best in Q4 as shoppers are gearing up for the busy season. But, this holiday season could look different than past ones. That’s why it’s critical to know the top large-cap stocks to watch in order to protect your money.
Large-cap stocks are generally those that have a market cap over $10 billion. Also, these are companies that are well established and often have more reliable revenue streams.
5 Large-Cap Stocks to Watch
A major theme developing is the FEDs indication that rising interest rates could be on the horizon. And when this happens, smaller growth companies will be the ones most heavily impacted.
Investing in more seasoned companies, like large-cap stocks, can help protect your portfolio. These businesses are better positioned for economic changes.
With this in mind, let’s take a deeper look into the top large-cap stocks to watch that are ready to weather the storm.
#5 Netflix (NASDAQ: NFLX)
- Market Cap: 291.83B
- P/E: 59.33
- EPS (TTM): 11.10
- YOY Revenue Growth: 17%
With its latest hit, Squid Games, a stock that’s on everyone’s mind right now is Netflix. The series is the latest to go viral and grab the world’s attention.
With that being said, 2020 accelerated Netflix’s business, prompting more people to sign up for the popular streaming service. Now that the Covid vaccine has rolled out and people feel safer returning to their normal activities, engagement has fallen slightly.
However, Netflix is still growing and adding memberships. They added another 1.5 million paid members in the second quarter.
Netflix stock is up 27% YTD, after an incredible run in 2020. With a well-known brand name, ability to produce hits, and improving margins, Netflix is a top large-cap stock to watch in Q4.
Additionally, Netflix is now looking to get into gaming, an industry looking to take in over $300 billion by 2026.
#4 Walmart (NYSE: WMT)
- Market Cap: 409.38B
- P/E: 41.75
- EPS (TTM): 3.55
- YOY Revenue Growth: 2.4%
When mentioning the top large-cap stocks to watch, you can’t skip Walmart (NYSE: WMT). In addition to being the largest retailer in the world, it’s creeping into eCommerce.
Walmart’s e-commerce comp sales have grown for the past 12 quarters, staying above 3.9% growth in 2021. Although the pandemic may have deterred shoppers from shopping in-store, Walmart accelerated its digital efforts.
On top of this, supply chain issues are pushing prices of goods higher. When this happens, low-cost retailers like Walmart can see higher demand.
And if that isn’t enough, Walmart offers an attractive dividend yield of 1.48%. Lastly, Walmart stock has yet to reach it YTD high again, offering a solid buying point.
#3 Amazon (NASDAQ: AMZN)
- Market Cap: 1.7T
- P/E: 58.26
- EPS (TTM): 57.38
- YOY Revenue Growth: 27%
Speaking of eCommerce, Amazon (NASDAQ: AMZN) makes up over 40% of the market share. The pandemic also accelerated Amazon’s business. But, it wasn’t just retail sales. Its dominant cloud service AWS also boosted its sales.
As more people are online, companies need a place to store and transfer the extra data. In fact, some of the top large-cap stocks use AWS, including Netflix.
Throughout 2021, Amazon stock has been covered by many analysts, essentially all of them agree – it’s a buy.
And with shortages about to hit stores around the world, Amazon is in an excellent position to capture a fair share of shoppers this holiday season.
#2 Alphabet (NASDAQ: GOOG)
- Market Cap: 1.9T
- P/E: 29.79
- EPS (TTM): 92.24
- YOY Revenue Growth: 62%
Next on our list of large-cap stocks to watch, we have Google (NASDAQ: GOOG), an innovating machine. It’s participating in some of the highest growing industries, such as:
- AI
- Advertising
- Smartphones
- Cloud services
- Self-driving tech
- And quick form videos (YouTube)
Not to mention, search, a market that’s synonymous with the company (Google it). Google controls 92.5% of all searches globally. Think about that, of all searches IN THE WORLD, over 90% go through Google.
As companies are putting more focus on digital advertising, Google ads is becoming a gold mine. The segment alone grew 68% with revenue of $50.4 billion.
Google stock is a good buy for most types of markets. If people stay home, they are on the internet longer, and companies will spend more on ads.
Google stock is up 60% in the past year due to its strong performance and doesn’t look to be slowing down anytime soon. With a tight grip on the advertising market, Google looks like a top large-cap stock to watch going forward.
#1 Large-Cap Stock to Watch – Apple (NASDAQ: AAPL)
- Market Cap: 2.47T
- P/E: 29.20
- EPS (TTM): 5.11
- YOY Revenue Growth: 36%
Despite supply issues plaguing the industry, Apple (NASDAQ: AAPL) is firing on all cylinders. It just broke its third-quarter revenue record and looks to continue the momentum.
The forward-thinking company broke revenue records in all geographic segments. All of Apple’s categories saw an increase in demand – iPhone, Mac, iPad, Wearables, and Services.
Apple’s most significant advantage has been and will continue to be its brand power. Everyone knows Apple as the cool, innovative brand. And that’s what keeps consumers coming back every time they release a product. Apple stock is up 15.39% YTD.
Top Large-Cap Stocks to Watch Before Years End – What You Need to Know
Before the end of the year, check out these top large-cap stocks to help balance your account. These stocks are well established but still exceeding everyone’s expectations. That’s what it takes to continue growing a company.
Additionally, with several unknowns coming up – inflation, interest rates, and supply chain problems – the best way to play it safe is by investing in the top companies.
On top of this, employees demanding more wages could hurt small businesses more. The companies on this list should have no issues hiring, as they are some of the best in the world to work for. As a result, they can afford to pay more than a startup.
When the stock market drops, people flee to safer investments. And these are all set to continue expanding in their respective industries.
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About Pete Johnson
Pete Johnson is an experienced financial writer and content creator who specializes in equity research and derivatives. He has over ten years of personal investing experience. Digging through 10-K forms and finding hidden gems is his favorite pastime. When Pete isn’t researching stocks or writing, you can find him enjoying the outdoors or working up a sweat exercising.