A large-cap (large market capitalization) stock refers to a company with a market capitalization of over $10 billion USD.
A company’s market capitalization is an essential metric used by investors globally to assess a company’s overall size via the market valuation of its outstanding shares.
Stocks of large-cap companies comprise an approximate 98.5% of the overall equity market in the United States, and are considered to be the “blue chips” of the stock market. Unlike their small-cap and mid-cap counterparts, large-cap stocks tend to be less volatile and offer more robustness during economic downturns and fluctuations.
List of Large-Cap Growth Stocks July 2024
| Company Name | Stock Symbol | Sector | Market Cap (in USD) | Fair Value Upside | Cash Flow / Debt |
|---|---|---|---|---|---|
| Berkshire Hathaway Inc Class A | BRKA | Financial Services | 903.1 B | 14.2% | 41.6% |
| Exxon Mobil Corp | XOM | Oil, Gas & Consumable Fuels | 446.5 B | 16.6% | 132.8% |
| Johnson & Johnson | JNJ | Pharmaceuticals | 360.3 B | 17.2% | 69.0% |
| Chevron Corp | CVX | Oil, Gas & Consumable Fuels | 286.1 B | 23.0% | 161.4% |
| Adobe Systems Incorporated | ADBE | Software | 247.3 B | 9.5% | 108.1% |
| Salesforce Inc | CRM | Software | 243.3 B | 21.6% | 89.5% |
Why We Picked These Large-Cap Growth Stocks
Alongside being large-cap, the stocks we have chosen for the list below also show solid growth prospects, strong fundamentals, long profit histories and strong credit ratings. We want to show investors that even the largest stocks available for trading often still have room to run, while also hedging against too much volatility.
The numbered list of such top large-cap growth companies are displayed below:
- Berkshire Hathaway Inc Class A (BRKA)
- Market Cap: $903.06 B
- Fair Value: $718,297.67
- Fair Value Upside: 14.2%
Berkshire Hathaway Inc. Class A (BRKA) represents the primary equity shares of Berkshire Hathaway, a multinational conglomerate holding company led by renowned investor Warren Buffett. Known for its high stock price, BRKA is one of the most expensive and prestigious stocks in the world.
2. Exxon Mobil Corp (XOM)
- Market Cap: $446.47B
- Fair Value: $132.07
- Fair Value Upside: 16.6%
Exxon Mobil Corp (XOM) is one of the world’s largest publicly traded international oil and gas companies. Formed by the merger of Exxon and Mobil in 1999, the company is headquartered in Irving, Texas. ExxonMobil engages in the exploration, production, transportation, and sale of crude oil, natural gas, and petroleum products.
3. (JNJ)
- Market Cap: $360.28B
- Fair Value: $175.51
- Fair Value Upside: 17.2%
Johnson & Johnson (JNJ) is a global healthcare company renowned for its wide-ranging products in pharmaceuticals, medical devices, and consumer health. Founded in 1886 and headquartered in New Brunswick, New Jersey, J&J is committed to improving health and well-being worldwide. The company produces well-known consumer products like Band-Aid, Tylenol, and Listerine.
4. Chevron Corp (CVX)
- Market Cap: $286.14B
- Fair Value: $190.99
- Fair Value Upside: 23%
Chevron Corporation (CVX) is a leading global energy company headquartered in San Ramon, California. With roots tracing back to 1879, Chevron is involved in virtually every aspect of the energy industry. The company explores, produces, and refines crude oil and natural gas, and it manufactures and distributes a wide range of petrochemical products.
5. Adobe Systems Incorporated (ADBE)
- Market Cap: $247.25B
- Fair Value: $610.54
- Fair Value Upside: 9.5%
Adobe Systems Incorporated (ADBE) is a multinational software company headquartered in San Jose, California. Founded in 1982 by John Warnock and Charles Geschke, Adobe is renowned for its creative software products that are widely used in design, photography, video editing, and digital marketing. Its flagship products include Adobe Photoshop, Illustrator, Acrobat, and the Creative Cloud suite.
- Salesforce Inc (CRM)
- Market Cap: $243.34B
- Fair Value: $305.31
- Fair Value Upside: 21.6%
Salesforce Inc. (CRM) is a leading American cloud-based software company headquartered in San Francisco, California. Founded in 1999 by Marc Benioff and Parker Harris, Salesforce is best known for its customer relationship management (CRM) platform, which provides a comprehensive suite of applications for sales, service, marketing, and analytics.
How to Find Large-Cap Growth Stocks
To start, we focused only on those US stocks that have a (huge) market capitalization exceeding $200 billion, and which continue to display room for potential growth through their fundamental metrics.
On feeding these requirements in the Investing Pro Stock Screener, we were able to narrow down to a short list of matching companies, given how expensive the current market is.
In order to guarantee investment security, we have also included a screener that omits all companies with insufficient cash flows that are unable to cover rising debt in case of an economic turndown.
Investors can find US-based large-cap growth stocks easily using Investing Pro. Here are the steps:
- Click on the Screener tool.
- Select ‘Market Cap’ as a filter parameter on the Screener page, and set the threshold value to $200 billion.
- Add two more filter metrics – this time for Fair Value Upside and Cash Flow/Total Debt, setting their range to desired values. To follow our stock selection metrics, set the Fair Value Upside set for higher than 5%, and the other filter to the over 40% range.
- For U.S.-centric stocks, select ‘United States’ under the ‘Trading Region’ tab drop-down, and make sure to check (select) the ‘Primary Trading Item’ option.
- You can then see the list of all the companies falling in the desired screener filters’ range, arranged in a descending order.
Best Large-Cap Growth Stocks FAQ
Q. What are large-cap growth stocks?
A large-cap stock belongs to a company that has a market capitalization of over $10 billion USD. Thanks to their huge valuation and overall size, large-cap stocks are often considered to be safe investment options. Growth stocks refer to scrips whose shares are projected to grow at a significantly higher rate than the average growth rate of the overall market.From a purely financial standpoint, market capitalization indicates the size and success of a corporation. It is the total value of a company’s outstanding shares multiplied with the current price of each equity share.
Q. Why invest in large-cap growth stocks?
Large-cap stocks are considered to be relatively safe investment options as they belong to companies that have mammoth valuations, and are often quite old companies. These stocks are stable in terms of price fluctuations and have strong fundamentals, which is a beneficial trait during economic downturns. Further, due to the ‘growth’ parameter, large-cap growth stocks have a substantial room for capital appreciation, therefore increasing the overall value of an investor’s portfolio.
Q. How should I evaluate the performance of my large-cap growth investments?
You can do this using InvestingPro. For example, if you want to evaluate the performance of a single holding, say Tesla Inc, you can go to Tesla’s overview page on InvestingPro and look at its average fair value, which has been curated by taking into account a total of 12 different technical investing models. Alternatively, you can also go to the ‘Watchlists’ page on InvestingPro and add all your holdings. Doing so will help you keep a track of all your investments in one place.
