It seems that aggressive, contractionary monetary policies have already paved way for another correction for equities. With inflation, aggressive rate hikes and fear of a recession, I would focus on large-cap stocks to buy.

It’s worth noting that large-cap stocks generally have a low beta. As such, a big move in a short time period does not come often. However, with several headwinds, revised earnings and margin guidance have resulted in some knee-jerk reaction. Even for large-cap stocks.

A good example is Walmart (NYSE:WMT) stock, which traded at highs above $160 in April 2022. Currently, the stock trades 26% below those highs. I believe that these corrections provide a golden opportunity to grab quality large-cap stocks at attractive valuations.

With the markets still bleeding, let’s focus on seven large-cap stocks to buy that are worth keeping in the radar. Any significant correction in these stocks would present a good entry opportunity. Over the next few years, rewards will come in the form of dividends and stock upside.

TICKER	COMPANY	RECENT PRICE
CVX	Chevron Corporation	$142.43
COST	Costco Wholesale Corporation	$475.00
JNJ	Johnson & Johnson	$179.66
KO	The Coca-Cola Company	$61.88
MCD	McDonald’s Corporation	$243.58
TSLA	Tesla, Inc.	$705.21
INTC	Intel Corporation	$37.41

Chevron

Even with broad market correction, Chevron (NYSE:CVX) stock has remained in an uptrend. However, with growing fears of recession, there is likely to be some correction in oil prices. A potential 10% to 15% correction in CVX stock would be a good buying opportunity.

Chevron is possibly among the best oil and gas stocks in terms of balance sheet fundamentals. As of first quarter 2022, the company reported a net-debt ratio of 10.8%.

Further, with low break-even assets, the company has the potential to generate robust cash flows. For the current year, Chevron is on-track to deliver operating cash flow in excess of $30 billion.

With strong fundamentals, Chevron expects to invest $15 to $17 billion annually. These investments are likely to translate into sustained growth and cash flow upside.

The company is also investing significantly in renewable assets. The acquisition of Renewable Energy Group will make Chevron the largest producer of renewable fuels in North America. Overall, CVX stock is worth keeping in the radar for an attractive entry point.

Costco Wholesale

Costco (NASDAQ:COST) stock has corrected from 52-week highs of $612 to current levels around $460. While the correction has been meaningful, COST stock still trades at a forward price-to-earnings-ratio of 34.9. On a relative basis, the stock seems expensive in the retail space.

Having said that, Costco is a quality name to consider for long-term exposure. The company’s comparable store sales growth has been robust. Further, with omni-channel presence, sales growth has accelerated. For Q2 2022, Costco reported 16.4% growth in sales to $51.61 billion.

Costco also generates robust cash flows from membership fees. In the last 12 months, the company reported $4.1 billion in membership income. With a high renewal rate and growth in member households, growth in membership fees will boost cash flows.

Inflationary pressure is a near-term headwind, coupled with the possibility of a recession in 2023. If these trigger further correction in COST stock, it would be a good buying opportunity.

Johnson & Johnson

Among large-cap stocks to buy on correction, Johnson & Johnson (NYSE:JNJ)  is worth keeping in the radar. The 2.7% dividend yield stock has been sideways for year-to-date 2022. Even as broader markets corrected. Even a 10% correction would be a good entry point in this low-beta stock.

In November 2021, Johnson & Johnson announced that it plans to split into two companies. The consumer product and pharmaceutical division would be separate entities in the next 12-18 months. This is likely to be positive for shareholders with the pharmaceutical division likely to be the key value creator.

For Q1 2022, the company’s consumer division reported sales decline of 1.5%. However, sales growth in the pharmaceutical and medical devices segment was 6.3% and 5.9%, respectively. In the pharmaceutical segment, the oncology and infectious disease segment were the key growth drivers. With an attractive innovation pipeline, growth is likely to sustain.

Overall, JNJ stock is worth adding to the long-term portfolio. The stock resilience in the last few months is an indication of the value the company holds.

The Coca-Cola Company

Coca-Cola (NYSE:KO) stock has also been resilient amid the broad market carnage. I believe that the stock is slightly expensive at a forward P/E of 24.0. However, the stock is worth keeping in the radar for shopping on any potential correction.

For 2022, Coca-Cola has guided for revenue growth of 7% to 8%. However, in Q1 2022, the company guided for mid-single-digit percentage headwind on comparable cost of goods sold. With inflation continuing to accelerate, there might be a case for more than expected margin compression.

Any correction due to the margin pressure factor will provide long-term investors with an attractive entry point. Beyond the inflationary headwind, the company’s growth outlook remains stable. The company has been gaining value share in total non-alcoholic, ready-to-drink beverages.

Also, long-term cash flows are likely to remain robust. For Q1 2022, the company’s free cash flow was $400 million. This implies an annualized FCF potential of $1.6 billion. KO stock dividends are therefore safe and a dividend yield of 2.97% looks attractive.

McDonald’s

McDonald’s (NYSE:MCD) stock is another large-cap stock that’s attractive for the long-term. However, it makes sense to wait for some correction before exposure.

Inflation is a concern for the restaurant industry. The impact of higher food inflation will be felt in the coming quarters. This is one factor that can trigger a correction in MCD stock. Recession is also a concern. However, it’s unlikely that a recession would have a significant impact on sales.

In terms of positives, McDonald’s reported global comparable sales growth of 11.8% for Q1 2022. With sustained growth in digital sales, the overall momentum is likely to sustain.

Additionally, McDonald’s guided for 1,400 new restaurant openings in 2022. In the near-term, this growth will be offset by the divestment of the company’s Russian business. However, aggressive new restaurant openings will ensure that long-term growth sustains.

For long-term investors, McDonald’s is likely to remain a cash flow machine. The current dividend yield of 2.3% is sustainable and there is visibility for dividend growth.

Tesla

Tesla (NASDAQ:TSLA) has already witnessed a deep correction from 52-week highs. However, TSLA stock still trades at a forward P/E of 53. If there is further correction for the broad markets, the stock can go lower.

Having said that, it makes sense to accumulate some TSLA stock even at current levels. The electric vehicle industry has multi-year tailwinds and Tesla is likely to remain the market leader.

Even with supply chain concerns, the company has reported healthy production and delivery numbers. It’s worth noting that Tesla also has an attractive line-up that includes Cybertruck, Tesla Semi and Roadster.

Vehicle deliveries growth is therefore likely to remain steady. Ramp-up of production at the Gigafactory in Europe will also contribute to revenue upside. Tesla has already been generating robust cash flows. Considering the industry outlook and the company’s global presence, there is ample headroom for value creation.

Intel

Intel (NASDAQ:INTC) stock has also been in a correction mode. At a forward P/E of 10.3 the 3.95% dividend yield stock looks very attractive.

In the near-term, Intel has disappointed the markets with a lowered guidance. This is the key reason behind a 15.5% correction in the last one month. However, the long-term outlook is still positive with the chipmaker focusing on innovation and gaining back market share.

It’s worth noting that for Q1 2022, the client computing segment reported a 13% decline in revenue on a year-on-year basis. However, data-center and AI group revenue increased by 22%. With strong demand for Xeon from hyperscale and enterprise customers, the segment outlook remains positive.

Intel has also invested in emerging businesses that can create long-term value. A good example is Mobileye, which is also due for listing through an IPO.

Overall, semiconductor demand is likely to remain stable in the long-term. Intel will continue to deliver robust cash flows. At current valuation, there seems ample scope for stock upside. Dividends are also sustainable in the long-term.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.