Mega-Cap Marvels: 3 Powerhouse Picks from IBD’s Prestigious Big Cap 20


  • IBD’s Big Cap 20 list features large companies that are unlikely to fall tremendously.
  • Martin Marietta (MLM): MLM is getting a big lift from Washington’s high infrastructure spending. 
  • Agnico Eagle Mines (AEM): Gold prices are rising and are likely to continue to do so.
  • Vertiv (VRT): The street is falling in love with VRT. 
IBD's Big Cap 20 - Mega-Cap Marvels: 3 Powerhouse Picks from IBD’s Prestigious Big Cap 20

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The primary focus of Investor’s Business Daily’s IBD Big Cap 20 list is large-capitalization stocks. The reasoning behind these picks is that they are steady, conservative equities that investors can expect consistency from. Some of the firms on this list even provide dividends. The Big Cap 20 includes names that can rally a great deal despite their large size. Indeed, many of the names over the years, such as ServiceNow (NASDAQ:NOW), Nvidia (NASDAQ:NVDA), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT) and Super Micro (NASDAQ:SMCI) have all rallied tremendously during their tenures on the IBD’s Big Cap 20. Here are three stocks from the IBD’s Big Cap 20 that look poised to deliver outsized gains for investors in the medium term and the long term.

Martin Marietta (MLM)

stocks to buy: construction workers work on a concrete floor
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Martin Marietta (NYSE:MLM) provides raw construction materials. The company is benefiting from Washington’s huge infrastructure spending and from U.S. factories being built.

Indeed, British bank HSBC wrote that the firm would benefit from its pricing power as a result of Washington’s infrastructure initiatives.

Further, investment bank Jeffries recently identified Martin Marietta as one of 12 high-quality mid-cap names to buy. The bank believes that mid-cap names have been beaten down and are poised to rally.

In the fourth quarter of last year, MLM’s top line climbed 9% versus the same period a year earlier to $1.6 billion, while its earnings per share from continuing operations soared 54% year-over-year to $4.63.

MLM has an attractive enterprise/EBITDA ratio of 18 times.

The combination of MLM’s strong growth catalysts and low valuation makes it one of the more attractive members of IBD’s Big Cap 20.

Agnico Eagle Mines (AEM)

A photo of a gold nugget on a table, being picked up by tweezers, with more gold behind it. Stocks to Buy in March
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Agnico Eagle Mines (NYSE:AEM) specializes in mining gold. As gold prices have climbed, AEM stock has gone along for the ride, rising 29% over in the last three months.

There are many reasons for the large gains in gold prices. Among these catalysts are relatively high inflation along with America’s huge, rapidly rising debt. The continuous, sizeable purchases of the metal by many of the world’s central banks have also caused an increase in gold pricing. None of these catalysts looks likely to weaken significantly anytime soon, so gold prices are likely to continue to climb for the foreseeable future, further lifting AEM in the process.

Also important is a little-noticed development: the very popular retail chain Costco (NYSE:COST) is now selling $100 million to $200 million in gold and silver monthly, Wells Fargo estimated recently. Costco’s decision to sell the metals is enabling America’s middle class to invest in them more easily than ever before. I believe that this initiative has set up a virtuous cycle in which the middle class is buying the metals, causing their prices to rise.

AEM has an attractive trailing price-earnings ratio of 16 times and a significant dividend yield of 2.5%.

Vertiv (VRT)

A magnifying glass zooms in on the website for Veritiv (VRTV).
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Vertiv (NYSE:VRTprovides monitoring systems and power management products for data centers.

With the rapid proliferation of AI causing the demand for data centers to jump, VRT’s top and bottom lines have soared in recent quarters. Since the utilization of AI will continue to increase very rapidly for many years, VRT’s long-term outlook is strong.

Moreover, Wall Street appears to be falling in love with the name, as many investment banks have recently issued positive notes on the stock.

For example, Bank of America recently added VRT to its list of “best investment ideas,” while Oppenheimer started coverage of the name with an “outperform” rating.

On the date of publication, Larry Ramer held long positions in SMCI and NOW. The opinions expressed in this article are those of the writer, subject to the 

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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