As the stock market is expected to remain highly volatile in the coming months, large-cap stocks should focus on their ability to avoid market fluctuations and provide stable returns. Analysts expect that fundamentally sound large-cap stocks will rise by more than 40% in the near term, with Meta (FB), Alibaba Group (BABA), AstraZeneca (AZN), Applied Materials (AMAT), and Salesforce.com (CRM).
shutterstock.com – stocknews
Concerns over rising Federal Reserve’s offensive rate later this year High inflationRussia’s sanctions on him are growing Ongoing aggression in Ukraine, A new COVID-19 variant detection, And deeper supply chain constraints are causing a lot of volatility in the stock market.
Since these factors are expected to destabilize the market in the near future, large-cap stocks should attract significant attention due to their ability to generate stable returns regardless of market conditions. Moreover, ongoing efforts are underway Solve supply chain problems And the increased focus on increasing domestic production will benefit large-cap stocks more than their smaller share next month. Investors are interested in this place by SPDR S&P 500 Trust ETF (Spy) 4.7% return last month.
Despite the prospect of continued market weakness, Wall Street analysts expect the broader market reach and strong growth traits to be offset by the large-cap stock meta platform, Inc. (FB), Alibaba Group Holding Ltd. (BABA), AstraZeneca PLC (AZN), Applied Materials, Inc. (AMAT), And Salesforce.com, inc. (CRM) To give a return of more than 40% next month.
Meta Platforms, Inc. (FB)
With a market capitalization of 590.78 billion, FB builds social media applications to connect worldwide through mobile devices, personal computers, virtual reality headsets and in-home devices. The company operates through two segments ্যাম Family of Apps (FoA); And Reality Labs (RL). Its products include Facebook, Instagram, Messenger, WhatsApp, and Oculus.
On April 7, 2022, FB’s financial arm, Meta Financial Technologies, announced Is planning to create its own virtual currency Or an in-app token for Metaverse, nicknamed “Zuck Bucks”, designed to reduce the platform’s reliance on advertising as part of a product suite, while reviving its user base. The company plans to integrate NFTs into its social media apps, such as “social tokens” or “reputation tokens,” which can be used by users as rewards and “creative coins” for influential people on Instagram. In May, the company will launch a pilot initiative to allow users to upload and share NFTs on Facebook. FB should see an expanded user base next month.
For its 2021 fourth quarter, ending December 31, 2021, FB’s revenue grew 20% year-over-year to $ 33.67 billion. As of December 31, 2021, the company had 16.60 billion Cash and cash equivalents.
The company has surpassed the Street EPS estimate in three of the last four quarters. The consensus revenue estimate of $ 132.20 billion for fiscal year 2022, ending December 31, 2022, indicates a 12.1% year-over-year improvement. The company’s EPS is expected to grow at a rate of 18.5% over the next five years.
FB’s revenue and total assets have grown at a CAGR of 28.3% and 19.5% over the last three years, respectively. The stock rose 15.4% last month and closed at 6 216.46 in yesterday’s trading session.
Of the 46 Wall Street analysts who rated the stock, 32 gave it a rating, while 13 gave it a hold rating. Analysts expect the stock to hit 325.60 in the near term, representing a 50.4% reverse probability.
Alibaba Group Holding Limited (BABA)
Based in China, BABA provides businesses, brands, retailers and other business technology infrastructure and marketing opportunities to engage internationally with their users and customers. The company operates through China trade; International trade; Local consumer services; Kainiyao; Cloud; Digital media and entertainment; And innovation initiatives and other departments. It has a market capitalization of $ 278.84 billion.
On November 16, 2021, BABA’s Alibaba Cloud completely moved all of BABA’s systems and operations to the cloud ahead of its 11.11 Global Shopping Festival, reducing computing resources for every 10,000 transactions by 50% over the previous year. Computing skills have also improved significantly with a 20% increase in technology deployment efficiency and a 30% increase in CPU resource usage. The Green Computing Power offer will help merchants make online shopping more attractive and enable BABA to meet the growing demand for low-carbon digital transitions.
BABA’s sales for the third quarter of fiscal 2021, ending December 31, 2021, increased 9.7% year on year to $ 38.07 billion. As of December 31, 2021, the company had এবং 46 billion in cash and cash equivalents.
Analysts expect BABA’s revenue to grow by 12.6% year-on-year to $ 150.53 billion for the fiscal year ended March 31, 2023. The company’s EPS is expected to grow at an annual rate of 16.9% over the next five years.
In the last three years, BABA’s revenue and total assets have grown at a CAGR of 34.3% and 24.3%, respectively. BABA rose 17.1% last month and ended yesterday’s trading session at $ 101.55.
17 Wall Street analysts rated the stock, 16 gave it a buy rating. BABA’s average price target represents একটি 174.12 a 71.5% reverse probability.
AstraZeneca PLC (AZN)
With a market capitalization of 3 213.79 billion, AZN is a Cambridge-based biopharmaceutical company that specializes in oncology, cardiovascular, renal and metabolism, respiratory, infectious, neuroscience and autoimmune trade prescription drugs. The global organization serves primary care and specialized care physicians through distributors and local representative offices.
On March 29, 2021, AZN’s Ondexxya received approval from Japan’s Ministry of Health, Labor and Welfare to quickly rule out an uncontrolled hemorrhage in patients with rapid FXA inhibitors after reversing the anticoagulant effect of Apexaban, Revaxaban, or Edoxaban. Has suffered bleeding. The trial Ondexxya was approved by the US FDA in May 2018 under the Accelerated Approval Route and received conditional approval from the European Commission in April 2019. This should allow Ondexxya to reach more markets in the coming months.
For its fourth quarter of 2021, ending December 31, 2021, AZN’s total revenue grew 62.1% year-over-year to 12.01 billion. The company’s total profit came in at $ 7.39 billion, indicating a 25% improvement over the year. As of December 31, 2021, it had $ 6.33 billion in cash and cash equivalents.
Analysts expect the company’s EPS to increase by 67.2% over the previous year to $ 4.43 for FY 2022, ending December 31, 2022. It surpassed the consensus EPS estimate in three of the next four quarters The unanimous revenue estimate of $ 43.38 billion for the same fiscal year indicates a 15.9% improvement over the year. AZN’s EPS is expected to grow at an annual rate of 15.7% over the next five years.
Over the past three years, AZN’s revenue and total assets have grown at a CAGR of 19.2% and 20.2%, respectively. The stock rose 17.1% last month and closed at .6 70.63 in yesterday’s trading session.
Three Wall Street analysts rated the stock, two gave it a buy rating, while one gave it a hold rating. Analysts expect the stock to touch $ 101 in the near term, which represents a 43% reverse probability.
Applied Materials, Inc. (AMAT)
With a market capitalization of $ 103.37 billion, AMAT provides component engineering solutions for electronic manufacturers of flat panel displays, solar photovoltaic cells and modules for semiconductor chips. The company provides equipment to produce coatings for flexible electronics, packaging and other applications.
On December 23, 2021, AMAT and the Institute of Microelectronics (IME), a research institute of the Singapore Agency for Science, Technology and Research (A * STAR), announced a new phase of their research collaboration at the Center of Excellence in Advanced in Singapore. Packaging. As chipmaker and systems companies demand different designs and improved packaging solutions, the offer of different chip integration with hybrid bonding technology and other emerging technologies will help meet the demand for shorter cable distances, increased I / O density, improved energy efficiency, and greater efficiency. System performance.
AMAT’s net sales for the first quarter of fiscal year ending January 30, 2022, increased 21.5% year on year to $ 6.27 billion. The company’s non-GAAP gross profit came in at $ 2.97 billion, indicating a 25.2% year-on-year improvement. Its non-GAAP operating income came in at 1.99 billion, up 32.7% from a year earlier. While its non-GAAP net income grew 32.3% year-over-year to 1.70 billion, its non-GAAP EPS grew 36% to 1.89 billion. As of January 30, 2022, the company had এবং 5.26 billion in cash and cash equivalents.
Analysts expect AMAT’s EPS to grow 18.9% year-on-year to $ 8.13 for 2022, ending October 31, 2022. It surpassed the Street EPS estimate in each of the next four quarters The consensus revenue estimate of $ 26.55 billion for the same fiscal year represents an increase of 15.1% over the previous year. The company’s EPS is expected to grow at an annual rate of 16.5% over the next five years.
Over the past three years, AMAT’s revenue and total assets have grown at a CAGR of 14.2% and 10.4%, respectively. AMAT lost 6% last month and ended yesterday’s trading session at $ 116.24.
Fifteen Wall Street analysts rated the stock, 11 gave it a buy rating, while four gave it a hold rating. The average price target of $ 176.64 represents one 52% reverse probability.
Salesforce, Inc. (CRM)
With a market capitalization of $ 195.55 billion, CRM provides enterprise cloud computing solutions that focus on managing customer relationships with businesses and industries worldwide. Its solutions include sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics and a cloud platform for creating custom applications.
On April 5, 2022, Bose Corporation, a premium audio equipment manufacturer, announced the establishment of CRM’s Salesforce Customer 360 to expand its powerful direct-to-consumer business by providing a personalized and useful experience. Specifically, Bose will deploy CRM’s Commerce Cloud to accelerate revenue growth and drive digital sales, integrate Molesoft Bose back-end systems, and hyper-personalization across Einstein channels. This should further nurture CRM’s partnership with Bose in the long run.
For the fourth quarter of its fiscal year 2022, which ended on January 31, 2022, CRM’s total revenue grew 25.9% year-on-year to $ 7.33 billion. The company’s total profit came in at 5.31 billion, representing an increase of 22.5% over the previous year. CRM’s non-GAAP revenue from operations came in at 1.10 billion for the quarter, representing a 7.7% year-over-year improvement. As of January 31, 2022, it had $ 5.46 billion in cash and cash equivalents.
The consensus EPS estimate of $ 32.08 billion for the fiscal year ended January 31, 2023, indicates a 21.1% improvement over the year. AMAT has surpassed the Street EPS estimate in each of the four back quarters, which is impressive. The company’s EPS is expected to grow at an annual rate of 15.1% over the next five years.
Over the last three years, CRM’s revenue and total assets have grown at a CAGR of 25.9% and 45.8%, respectively. The stock lost 1.2% last month and ended yesterday’s trading session at $ 195.45.
The stock was rated by 27 Wall Street analysts, 23 gave it a buy rating, while four gave it a hold rating. Analysts expect the stock to hit 300.46 in the near term, representing a 53.7% reverse probability.
FB was trading at 21 214.38 per share on Tuesday afternoon, down $ 2.08 (-0.96%). Year-to-date, FB decreased -36.26%, compared to the -7.29% increase in the benchmark S&P 500 index over the same period.
About the Author: Swetha Vijayan
Swetha is an investment analyst and journalist with a keen interest in exploring market inefficiencies. He is passionate about educating investors so that they can succeed in the stock market.
More …
The post According to Wall Street, grab these 5 large-cap stocks before jumping 40% First appeared Stocknews.com
