3 Strong Buy Large-Cap Stocks to Add to Your Q2 Must-Watch List


  • Be sure to include these solid buy-and-hold stocks in your lineup.
  • Toyota Motor (TM): The auto company shows strong earnings growth and major investment in its facilities.
  • Comcast (CMCSA): A telecom company has a decent dividend yield and still trades at a fair valuation.
  • Meta Platforms (META): Zuckerberg’s project offers an initial dividend while experiencing growth after legislation regarding TikTok.
Strong Buy Large-Cap Stocks - 3 Strong Buy Large-Cap Stocks to Add to Your Q2 Must-Watch List

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Investors search for large-cap stocks to gain wider market exposure. Larger companies with a strong reputation stand the greatest chance of experiencing consistent growth. Also, they provide above-average returns to investors. 

On the other hand, increased risk is possible when investing in smaller companies. With higher likelihood of large share price shifts, they may also lack durability to withstand bear markets. It is typically a much better investment strategy to invest in large-cap companies than small companies in hopes of hitting it big.

So, a few options for strong buy companies exist. They have experienced decent returns this last year and still offer strong growth projections that should be at the top of any investor’s watch list.

Toyota Motor (TM)

Toyota motor corporation logo on dealership building
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Toyota Motor (NYSE:TM) is a large auto manufacturer that assembles a wide range of vehicles, including sedans, pickup trucks, minivans, SUVs, and luxury cars. Additionally, Toyota provides financing and leasing services.

Impressively, TM has outpaced most other automakers this year in share price appreciation. Therefore, its share price increased by over 85%. But other stocks such as Tesla (NASDAQ:TSLA) have seen negative growth, and Stellantis (NYSE:STLA) has grown by 69%.

It has made multiple large investments in its Kentucky plant, increasing electric vehicle (EV) production to nearly $1.3 billion. And with a $2.2 billion investment in its facility in Brazil, production will start for a new hybrid vehicle and SUV.

On Feb. 6, Toyota released its Q3 earnings results, with total revenue increasing 24% and net income more than doubling year over year (YOY). Also, it raised full-year 2024 earnings estimates from $290 billion to $294 billion.

Recently, Toyota has seen massive growth due to increased sales following issues regarding the prior chip shortages. And, TM offers investors a favorable dividend yield of 1.77% annually which could increase based on robust sales growth. 

Comcast (CMCSA)

Keeping NBC News on the Air Could Hamper Comcast Stock
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Comcast (NYSE:CMCSA) is a media company that offers broadband and wireless services for residential and business applications. It operates the streaming service Peacock and the NBCUniversal television network. Also, Comcast owns various Universal theme parks in Florida, California, Japan, and China.

On Jan. 25, Comcast reported Q4 of 2023 earnings, with total revenue growth of 2% and a net income increase of 8%. Its theme park segment was most profitable, increasing by 12% YOY. Most notably, its free cash flow increased by 29% within the same time period. Also, CMCSA boasts an increase in dividends by 7% YOY.

Over the past year, share price increased by 18%, while offering a dividend yield of approximately 2.90% annually. Comcast provides stable growth projections along with impressive margins regarding free cash flow and trades at a reduced valuation. 

Meta Platforms (META)

In this photo illustration the Meta logo seen displayed on a smartphone and in the background the Facebook logo
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Meta Platforms (NASDAQ:META) is a social media company offering various platforms such as Facebook, Messenger, and Instagram.

Over this past year, its share price has seen a massive shift, growing over 150%. This is attributed primarily to increased profits surrounding its growing ad business.

On the day after its latest earnings release on Feb. 1, Meta’s share price skyrocketed by over 20%. Its earnings for the fourth quarter full year 2023 shows total revenue increased by 25%. That’s also in line with its advertising revenue which saw 24% increased growth YOY. Net income surged over threefold to $14 billion within the same time period. 

Along with this stellar earnings report, Meta announced that it would be issuing its very first dividend payment. Shareholders should expect 0.10% annually for a quarterly dividend of $0.50 per share.

Recent news includes the legislative issues regarding TikTok and its parent company, China-based ByteDance. If the bill targeting TikTok’s operations within the U.S. takes effect, it could spell big news for other social media platforms. That includes Meta, where a large user base would inevitably shift over to other platforms.

As of this writing, Noah Bolton held a LONG position in TM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with topics such as the stock market and financial news.

Article printed from InvestorPlace Media, https://investorplace.com/2024/03/3-strong-buy-large-cap-stocks-to-add-to-your-q2-must-watch-list/.

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