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MSFT   300.19 (+4.06%)
FB   301.98 (+0.61%)
GOOGL   2,632.91 (+3.71%)
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TSLA   952.45 (+3.71%)
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ACB   4.23 (+0.48%)
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S&P 500   4,427.45 (+1.63%)
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QQQ   352.22 (+2.06%)
AAPL   162.84 (+1.92%)
MSFT   300.19 (+4.06%)
FB   301.98 (+0.61%)
GOOGL   2,632.91 (+3.71%)
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TSLA   952.45 (+3.71%)
NVDA   232.19 (+4.01%)
BABA   116.27 (-2.41%)
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AMD   113.52 (+2.15%)
CGC   7.53 (+2.31%)
MU   83.43 (+3.36%)
GE   90.62 (-0.54%)
T   25.61 (-3.29%)
F   20.23 (+1.25%)
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ACB   4.23 (+0.48%)
BA   196.76 (-3.60%)
S&P 500   4,427.45 (+1.63%)
DOW   34,659.85 (+1.06%)
QQQ   352.22 (+2.06%)
AAPL   162.84 (+1.92%)
MSFT   300.19 (+4.06%)
FB   301.98 (+0.61%)
GOOGL   2,632.91 (+3.71%)
AMZN   2,824.16 (+0.87%)
TSLA   952.45 (+3.71%)
NVDA   232.19 (+4.01%)
BABA   116.27 (-2.41%)
NIO   23.61 (-0.76%)
AMD   113.52 (+2.15%)
CGC   7.53 (+2.31%)
MU   83.43 (+3.36%)
GE   90.62 (-0.54%)
T   25.61 (-3.29%)
F   20.23 (+1.25%)
DIS   136.94 (+0.31%)
AMC   16.67 (+4.06%)
PFE   53.13 (+1.12%)
ACB   4.23 (+0.48%)
BA   196.76 (-3.60%)

7 Large-Cap Stocks to Help Navigate a Volatile Market

Posted on Tuesday, December 28th, 2021 by MarketBeat Staff
7 Large-Cap Stocks to Help Navigate a Volatile Market

Large-cap stocks are foundational elements of every portfolio. These steady performers may not excite growth investors in the midst of a bull market. However, in periods of volatility, large-cap stocks act as a port in the storm.

Large-cap stocks offer investors some important benefits. First, by definition large-cap stocks are companies that have a market capitalization of $10 billion or more. This is an indication that the company has a mature business that carries less risk of having a significant downturn in business during economic downturns.

Second, large-cap stocks frequently pay dividends. These dividends offset the relatively slower growth in the company’s stock price and can lead to an impressive comprehensive total return. In several cases these companies have increased their dividends over a long period of time making them members of the Dividend Aristocrats or Dividend Kings club.

Large-cap stocks also give investors access to a significant amount of financial data. This makes it easy for investors to conduct their due diligence and understand how profitable an investment is likely to be.

In this special presentation, we’re giving you a look at seven large-cap stocks that have a bullish outlook at a time when the market is likely to remain volatile.



#1 - Marathon Petroleum (NYSE:MPC)

Marathon Petroleum logo

What a difference a year makes. At this time last year, Marathon Petroleum (NYSE:MPC) was closing out a year that saw MPC stock drop approximately 31%. But opportunistic investors that bought the stock at a discount have been rewarded with a gain of nearly 56%, easily outpacing the performance of the S&P 500.

However, since its last earnings report, MPC stock is down about 4%. This may be a case of harvesting gains as the company nearly doubled revenue expectations. Plus the company is profitable once again. And with oil prices forecast to move higher in the next year, 2022 should be another good year for Marathon, which is one of the best-in-breed among oil stocks. Analysts give the stock a consensus price target of $72.58 which would be a gain of approximately 12%.

Marathon pays a quarterly dividend that currently has a yield of 3.68%. The company has increased its dividend in each of the last nine years.

About Marathon Petroleum

Marathon Petroleum Corp. is an independent company, which engages in refining, marketing, and transportation of petroleum products in the United States. Itoperates through the following segments: Refining and Marketing; Retail; and Midstream. The Refining and Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast and Midwest regions of the United States; purchases ethanol and refined products for resale and distributes refined products through various means, including barges, terminals, and trucks that the company owns or operates.Read More 
Current Price
$72.43
Consensus Rating
Buy
Ratings Breakdown
12 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$74.38 (2.7% Upside)




#2 - EOG Resources (NYSE:EOG)

EOG Resources logo

Continuing in the oil and gas sector, we believe that EOG Resources (NYSE:EOG) is a strong large-cap stock to buy. This is a pure-play stock for the oil and gas industry. So if you’re buying it, you’re anticipating that inflationary pressures will remain. And given the recent remarks by the Federal Reserve that seems like a reasonable bet to make.

However, there’s more to like about EOG Resources then rising commodity prices. The company took aggressive cost-cutting measures in 2020 and 2021 and now that oil prices are back on the rise, much of those initiatives should appear on the company’s bottom line.

EOG stock is up 80% in 2021, but several analysts have boosted their price targets since the company’s last earnings report and forecast about 14% more stock price growth in the next year. The company has increased its dividend in each of the last five years.

About EOG Resources

EOG Resources, Inc engages in the exploration, development, production and marketing of crude oil and natural gas. It operates through the United States, Trinidad & Tobago, and Other International segments. The company was founded in 1985 and is headquartered in Houston, TX.
Current Price
$108.33
Consensus Rating
Buy
Ratings Breakdown
17 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$104.70 (3.4% Downside)




#3 - Best Buy (NYSE:BBY)

Best Buy logo

If this was a presentation about stocks to buy right now, I’d stay away from Best Buy (NYSE:BBY). But we’re talking about stocks to hold for the long haul. That changes the conversation about BBY stock. This is a company that has successfully made the transformation from a destination brick-and-mortar store to an omnichannel giant that is a worthy competitor of Amazon (NASDAQ:AMZN).

In the early part of 2022, Best Buy has said margins will be under pressure which suggests they don’t believe they will successfully pass along any price increases to its end consumer. And like many companies, they are not immune from supply chain disruptions.

But at this point, investors can make the case that Best Buy is oversold. And analysts seem to agree, giving BBY stock a consensus price target of $133.92. That gives the stock a 34% upside in addition to a dividend that the company has increased for 18 consecutive years.

About Best Buy

Best Buy Co, Inc engages in the provision of consumer technology products and services. It operates through two business segments: Domestic and International. The Domestic segment comprises of the operations in all states, districts, and territories of the U.S., operating under various brand names, including Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Napster, and Pacific Sales.Read More 
Current Price
$98.65
Consensus Rating
Buy
Ratings Breakdown
10 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$129.92 (31.7% Upside)




#4 - UnitedHealth Group (NYSE:UNH)

UnitedHealth Group logo

Healthcare stocks will continue to be among the best performers in 2022. And as investors hunt for quality, UnitedHealth Group (NYSE:UNH) should get strong consideration.

UnitedHealth is one of the largest companies in the field of managed care. This is expected to be a strong catalyst as hospitals and medical centers continue to recover from the pandemic closures.

And the company has also entered into an agreement to purchase Change Healthcare for $8 billion. The company recently announced this acquisition will not happen until April instead of February as previously thought. That may put the stock under pressure in the short term, but unless the SEC blocks the acquisition on antitrust concerns, this will be another catalyst for UNH stock.

UNH stock is up 43% in 2021 and is currently at the upper range of the analysts’ forecasts. However, in the last month, the stock has seen its price target boosted by a number of firms, most notably Goldman Sachs (NYSE:GS) that sees strong growth in the managed care business.

About UnitedHealth Group

UnitedHealth Group, Inc engages in the provision of health care coverage, software, and data consultancy services. It operates through the following segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx. The UnitedHealthcare segment utilizes Optum's capabilities to help coordinate patient care, improve affordability of medical care, analyze cost trends, manage pharmacy benefits, work with care providers more effectively, and create a simpler consumer experience.Read More 
Current Price
$461.09
Consensus Rating
Buy
Ratings Breakdown
20 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$505.76 (9.7% Upside)




#5 - Texas Instruments (NASDAQ:TXN)

Texas Instruments logo

Texas Instruments (NASDAQ:TXN) gives investors an attractive option for capitalizing on the growth in semiconductor stocks. TXN stock hasn’t been the strongest performer in the chip sector in 2021. For example, the company’s 16% growth is below the 42% growth shown by the iShares Semiconductor ETF (NASDAQ:SOXX) which has climbed 42%.

One reason for this may be that Texas Instruments generates much of their revenue from the automotive sector. This was a volatile sector in 2021, but one that is likely to have significant upside in 2022.

However, investors who perform their due diligence will notice that the company received three bullish price target increases since it last reported earnings. This could push TXN stock up far higher than the 10% upside forecast by the current analysts’ estimates.

But again, this is a presentation about large-cap stocks. And that means that you’re trading a little growth for the consistent dividend. And Texas Instruments has increased its dividend in each of the last 18 years.

About Texas Instruments

Texas Instruments Incorporated engages in the design, manufacture, test, and sell analog and embedded semiconductors, which include industrial, automotive, personal electronics, communications equipment, and enterprise systems. It operates through the following segments: Analog and Embedded Processing.Read More 
Current Price
$182.46
Consensus Rating
Hold
Ratings Breakdown
11 Buy Ratings, 11 Hold Ratings, 2 Sell Ratings.
Consensus Price Target
$208.00 (14.0% Upside)




#6 - Merck & Company (NYSE:MRK)

Merck & Co., Inc. logo

Merck & Company (NYSE:MRK) is a best-in-breed pharmaceutical stock. However, the stock has been under-the-radar of some investors because it’s not part of the Covid-19 vaccine race. This was evident in the fact that MRK stock dropped 10% in 2020. Some of that is attributable to the company spinning off several of its business units, and the associated $6.5 billion in revenue, to a different company.

However, the company still has a strong performer in its oncology drug, Keytruda, which delivered a record $14 billion in revenue in 2020 and is on pace to do even better in 2021. Investors will certainly note that Keytruda has patent protection in the United States for another six years. And in the European Union and Japan the protections go even further.

Analysts have a consensus price target that gives MRK stock a 20% upside. The stock has paid out a dividend for the last 11 years.

About Merck & Co., Inc.

Merck & Co, Inc engages in the provision of health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It operates through the following segments: Pharmaceutical, Animal Health, and Other. The Pharmaceutical segment includes human health pharmaceutical and vaccine products.Read More 
Current Price
$79.75
Consensus Rating
Buy
Ratings Breakdown
9 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$92.07 (15.4% Upside)




#7 - Verizon Communications (NYSE:VZ)

Verizon Communications logo

If you’re looking for a contrarian option as a large-cap stock for 2022, we offer Verizon Communications (NYSE:VZ). Verizon has the distinction of being among the “Dogs of the Dow” in 2021. This is a dubious distinction that goes to stocks that are the worst performers among the Dow Jones components. In the case of Verizon, the stock is down 10% in 2021.

So is there reason for optimism in 2022? The continued opportunity in 5G will likely be a catalyst. And the company will also continue to benefit from demand for its wireless products even as competition increases.

And investors will also be attempting to digest what the company’s recent announcement of a partnership with Vuzix means. It could make Verizon a picks-and-shovel play in the emerging metaverse, which would be something new for investors to consider.

Analysts give VZ stock a 13% upside from its current level. Verizon has increased its dividend in each of the last 17 years.

About Verizon Communications

Verizon Communications, Inc is a holding company, which engages in the provision of communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. It operates through the Verizon Consumer Group (Consumer) and Verizon Business Group (Business) segments.Read More 
Current Price
$51.78
Consensus Rating
Hold
Ratings Breakdown
5 Buy Ratings, 12 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$59.40 (14.7% Upside)



 

Many investors enjoy researching and selecting their own stocks. And we believe that the stocks in this presentation can be solid additions to any portfolio. However, many investors prefer a more “set it and forget it” approach.

In the case of large-cap stocks, this can lead them to index funds or exchange-traded funds that closely track the Russell 1000 Index. The Russell 1000 tracks 1,000 of the largest United States companies in terms of market capitalization.

There are many funds that track the Russell 1000. One of the best performing funds is the iShares Russell 1000 ETF (NYSEARCA:IWB). This is the largest growth fund that tracks the Russell 1000 with over $78 billion in assets. Another solid choice is the Vanguard Russell 1000 ETF (NYSEARCA:VONE). Both funds give investors broad exposure to a basket of large-cap stocks. And both funds pay quarterly dividends that can be automatically reinvested to contribute to the fund’s total return.

7 Dividend Stocks that Help Take the Bite Out of Inflation

Inflation and its effects on corporate earnings going forward is the headline story taking over the stock market. The Consumer Price Index rose at a 6.8% pace on a year-over-year (YOY) basis. That marked the fastest rate since June 1982.

And even when the CPI stripped away food and energy prices (because who buys groceries or puts gas in their car?), the CPI was still 4.9% on a YOY level, the highest since 1991.

The market is coming to grips with the idea that not only is inflation is not transitory, but that it’s drawn the attention of the Federal Reserve. And after the Federal Reserve’s last meeting, investors are starting to see how the market may be affected in 2022.

Growth investors may be able to ride out whatever comes next. The same can’t be said for income investors, particularly those who are at or nearing retirement age. The effect of inflation may be having a stark effect on their portfolios at a time when they need money the most.

One great way to offset the effect of inflation in their portfolios is by buying high-quality dividend stocks. And that’s the focus of this special presentation. Dividends can help provide a source of income. And for investors who don’t need the money right away, reinvesting dividends can allow for a greater total return.

In this special presentation, we’ll highlight seven stocks that made the MarketBeat list of 100 dividend-paying companies that received the highest average rating among analysts in the last 12 months.

View the "7 Dividend Stocks that Help Take the Bite Out of Inflation" Here.





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