The Next Amazon? 3 Mega-Caps That Could Clobber the Markets

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In case you missed it, Amazon’s (NASDAQ:AMZN) performance has been absolutely absurd lately. As I mentioned recently, shares have downright soared so far in 2015 after struggling a bit last year. The 40% gain since January is especially head-turning considering the sheer size of the company.

quarterly review and outlookWhether we’re talking about stock price or earnings (which in theory go hand in hand), exponential growth is easier and more common when you’re a smaller company. After all, it’s a lot easier to double your sales when you have $10 million in revenue than when you have $10 billion.

Amazon, though, marches to the beat of its own drum … with investors again bidding up its potential while shrugging off the company’s inconsistent profits. Some investors believe that makes it one of the better stocks to buy, while others see things differently.

Amazon stock seems to be an anomaly. Most companies eventually transition from being growth picks to value plays. And while it seemed like that’s what was happening to shares of AMZN last year, investors reverted to the old mindset this year.

Still, it’s not unthinkable that another mega-cap could take the baton from Amazon and go running to its own massive gains in the second half of the year.

If you’re looking for similar explosive potential from the mega-cap set, consider these three stocks to buy.

Mega-Cap Stocks to Buy: General Electric (GE)

General-Electric-GE-stock-blue-chip stocksFirst up, we have household name General Electric (GE) — a diversified company that has been around since 1892 and operates in 175 countries. And upcoming moves make it one of the best stocks to buy right now.

Don’t be fooled by the slated 20% drop in earnings on tap for this year. So far this year, shares of GE stock have notched year-to-date gains of just over 8%. General Electric has been hard at work shedding assets of late — moves that analysts are applauding left and right.

Selling GE Capital, for instance, is a long-term investment for the broader company … and one that’s setting the company up for a nice 20% increase to next year’s EPS as well.

Expect investors to keep being bullish on GE as a result … and the company’s 3.5% dividend yield won’t hurt. Sure, companies usually shell out such a yield when growth isn’t in the cards, but remember the positive one-two punch of high-yield picks. You’ll be able to tack that payout onto your returns, and it lures in lots of other investors craving a constant payout — and they, in turn, can bid GE stock higher as well.

Mega-Cap Stocks to Buy: JPMorgan Chase (JPM)

JPM stock JPMorgan Chase NYSE:JPM JPM stockThe financial sector — when has seen impressive fund inflows of late and is generally a market leader during upswings — is a great place to find mega-cap stocks to buy for outperformance in the second half of the year.

JPMorgan Chase (JPM), for example, is heading into the second half of the year with strong momentum and should continue to see higher highs. Just this week, shares of JPM hit a lifetime high as the stock boasted the best performance of the entire Dow Jones Industrial Average.

While the current quarter is slated for a slight earnings drops, the following quarter should see 7% earnings growth year-over-year and play a role in the full-year double-digit growth. Not too shabby for a company worth more than $250 billion and with a hand in everything from investment banking to financial transaction processing to asset management — a company that has just a little momentum at its back right now.

Mega-Cap Stocks to Buy: Google (GOOG, GOOGL)

goog google stock earnings stockFinally, we have a tech stock that’s arguably the polar opposite of Amazon … but that could post similar upside in the second half of the year. As I pointed out recently, Google stock is an anomaly of its own in the sense that it boasts an established brand and mind-blowing footprint, but it still a buzzworthy Silicon Valley darling that’s poised for solid growth.

Google is slated to grow earnings by 10% overall in 2015 … and then on tap to tack another 16% improvement on the year after. Investors haven’t been too impressed with the company lately, as shares have moved sideways during the year-to-date period, notably lagging the Nasdaq.

But that’s precisely why Google just might be one of the best stocks to buy right now. One small upwards catalyst could put the spotlight back on Google stock, causing investors to realize it’s an amazing mega-cap mix of value and growth.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/06/stocks-to-buy-amzn-goog-jpm/.

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