Large-cap growth stocks continue to lead the market higher. Yes, technology stocks are the main drivers of the market this year. However, several other non-tech names have also enjoyed big rallies and rewarded stockholders with gains. For investors hungry for growth after the savage bear market of 2022, large-cap growth stocks continue to provide the best option. Large-cap securities are also more likely to outperform on their financial results and pay a consistent dividend to shareholders. As the year-end market rally continues to gather steam, we look at seven large-cap growth stocks for greedy investors.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) continues to lead the market higher. At this point, the chipmaker’s stock seems unstoppable, having gained nearly 250% on the year and rising more than 1,100% over the past five years. It’s microchips and semiconductors are already the foundation of most artificial intelligence (AI) applications, powering its sales and financial results to new heights. Now, Nvidia has unveiled a brand new microchip, the H200 Tensor Core GPU, that is its most powerful technology yet and expected to drive sales even higher.
The one concern that had weighed on NVDA stock was the U.S. government’s ban on exporting powerful microchips to China over fears that the government in Beijing would use the technology for military purposes. But here, too, Nvidia has found a solution. Going forward, Nvidia will sell less powerful versions of its high-end microchips and semiconductors to Chinese companies without violating American export controls. This is a huge development as the Chinese market accounts for 25% of Nvidia’s annual revenues. As mentioned, NVDA stock looks unstoppable as a large-cap growth stock.
Uber (UBER)
Ride sharing company Uber’s (NYSE:UBER) third-quarter financial results were a bit misleading. Yes, the ride-sharing and delivery company missed Wall Street forecasts. However, it’s finances are improving and its outlook is very strong. Despite missing analysts’ forecasts, Uber’s revenue in Q3 was up 11% from a year earlier, and the company reported a profit compared with a net loss of $1.2 billion in the same period of 2022.
Additionally, Uber reported strong growth in its gross bookings, trips, and monthly active users. Gross bookings for Q3 came in at $35.3 billion, up 21% year-over-year (YOY). The number of monthly active users reached 142 million in the quarter, up 15% from a year ago. And the company recorded 2.44 billion trips worldwide during the period, up 25% from last year. Looking ahead, Uber said it expects to report gross bookings between $36.5 billion and $37.5 billion for the year’s fourth quarter, which is ahead of estimates.
UBER stock has increased more than 20% since its Q3 print on expectations that the company will be around for the long-term. So far in 2023, the company’s share price has risen 115%.
Restaurant Brands International (QSR)
Restaurant Brands International (NYSE:QSR) is a company on the upswing. It has built a great portfolio of brands that includes Burger King, Popeyes chicken, Firehouse Subs, and the Tim Hortons coffee and doughnut chain. Restaurant Brands is in the midst of a multi-year rebrand of Burger King that is starting to show results and Tim Hortons (which is named after a hockey player) is the leading restaurant chain in neighboring Canada.
Restaurant Brands just announced decent Q3 results, with EPS of 90 cents versus 86 cents that was expected. Revenue of $1.84 billion was slightly below the $1.87 billion consensus expectation of analysts. However, sales were up 6.4% from a year earlier and same store sales growth remains strong, coming in at 7% YOY in the quarter. Looking out long-term, QSR stock looks poised for continued growth. The share price is up nearly 20% over the last 12 months.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) is the most profitable streaming company and ahead of the pack when it comes to content creation. Now that the strike by Hollywood actors and writers is over, the company seems to have little in its way as it strives for global supremacy in the world of entertainment. NFLX stock recently jumped 14% higher after it reported strong Q3 results that beat analyst forecasts, including a huge increase in its number of paid subscribers.
For Q3, the company reported EPS of $3.73, which was ahead of the consensus estimate among analysts of $3.49. Revenue for the three months ended Sept. 30 amounted to $8.54 billion, which matched forecasts. Even better, Netflix announced that it added 8.8 million net new subscribers during the quarter, much better than the 6.1 million estimated on Wall Street. Netflix said the positive quarter was due to increased subscription fees and improving profitability.
Netflix just raised the monthly price of its premium subscription plan in the U.S. to $22.99 from $19.99, while its basic plan went up to $11.99 from $9.99. Year-to-date, NFLX stock is up 53%.
Procter & Gamble (PG)
Consumer goods giant Procter & Gamble (NYSE:PG) is a good stock to own over the long-term because it tends to perform well regardless of what is happening with the economy. Many analysts expected Procter & Gamble’s fortunes to decline as inflation and interest rates marched higher and consumers sought out cheaper alternatives to the company’s name brand products that include Tide laundry detergent and Gillette razor blades. But that turned out not to be the case.
Over the last 18 months, Procter & Gamble has proven that it has pricing power to spare, and that many consumers remain loyal to its products, which also include Olay soap, Crest toothpaste, and Pampers diapers. Recently, Procter & Gamble posted Q3 financial results that topped Wall Street forecasts on both the top and bottom lines. The Cincinnati-based company said that its sales got a boost in the latest quarter from another 7% price increase across its product line.
PG stock is up 8% over the last 12 months and up 62% over five years. This is a reliable and steady long-term compounder.
BlackRock (BLK)
There are a few reasons for investors to take an interest in BlackRock (NYSE:BLK). Not only is the company the world’s largest money manager with nearly $10 trillion of assets under management, but it is also pushing into the red hot area of cryptocurrencies. News recently broke that BlackRock is taking steps to launch both Bitcoin (BTC-USD) and Ethereum (ETH-USD) exchange-traded funds (ETFs). BlackRock is well-positioned to take these steps as it is the world leader in ETFs.
The U.S. Securities and Exchange Commission (SEC) is considering BlackRock’s Bitcoin ETF application, along with 11 others it has received from investment firms ranging from Fidelity to Grayscale. The SEC is expected to decide on whether to approve crypto ETFs shortly. News that BlackRock is preparing to also apply for an Ethereum ETF was enough to send the cryptocurrency’s price up 7%. Beyond digital coins and tokens, BlackRock remains a global investing leader whose stock is up 70% over five years.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST) is another reliable growth stock that provides steady returns to stockholders. In 2023, COST stock has increased 30%, bringing its gains over five years to 156%. In a sign of just how consistent Costco is, the company just announced a new chief executive and he is only the third CEO in the company’s 40-year history. Chief Operating Officer Ron Vachris, who began his career with Costco as a forklift driver in the mid-1980s, takes over at the start of 2024.
Another fun fact is that every member of Costco’s executive management team has been with the company for more than 20 years. This kind of consistency is rare in Corporate America and helps explain why Costco continues to grow and report strong financial results year-after-year. The company most recently reported strong results due to robust grocery sales and increasing customer traffic, which rose 5.2% globally from the same period of 2022.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
