If you’re interested in some of the large cap stocks to build your portfolio on, we have details on 3 of them to look at below.
April 17, 2021
5 minutes of reading
This story originally appeared on MarketBeat
The concept of building your portfolio around some core positions that deliver increased and steady returns is a great way to approach a long-term investment. By emphasizing buying large positions in companies with stable and less volatile earnings, you can feel more comfortable taking risks with the rest of your portfolio. and will not have to worry about large withdrawals in your account.
Mega-cap stocks can be a great choice for core positions as they are often companies with a long history of success and will likely remain at the top of their respective industries for many. next year. After all, a company isn’t just growing its market cap to $ 200 billion or more overnight. The fact that these are the largest and most important companies in the world gives you confidence in your portfolio and keeps your top hold list regardless of the overall market. If you’re interested in some of the large cap stocks to build your portfolio on, we have details on 3 of them to look at below.
Microsoft (NASDAQ: MSFT)
If you’re looking for a “big tech” stock to build your portfolio on, it’s hard to imagine a much better option than Microsoft. The company is getting very close to joining the $ 2 trillion market cap club and there are a lot of different trends currently in its favor, which is great reason to look further. stock now. While most people are familiar with Microsoft’s enterprise software and personal computing products, investors should be most excited about the company’s burgeoning cloud solutions. With so many businesses looking to update their digital infrastructure and improve operational efficiency, Microsoft’s commercial cloud will be a major growth driver for the company over the next few years.
Microsoft Azure, Microsoft’s cloud computing platform that helps companies transform their digital, is arguably the most interesting reason to consider adding a core position in the company at this point. Microsoft has nearly doubled its market share to 17% of its public cloud infrastructure business in the past few years, and Azure revenue has grown 50% year-on-year in Q2. history of making wise acquisitions, including the recently announced Nuance Communications acquisition and having a powerful, innovative new product system that includes virtual / augmented reality technology offers a lot of potential. increase in prices in the future.
The Home Depot (NYSE: HD)
Next, we have The Home Depot, which is the world’s largest home repair retailer and a very strong stock to consider building your portfolio. As a market leader serving home-made homeowners and professional clients, you can expect The Home Depot to continuously generate high income and deliver good and long-term growth. It’s a company that has been a major beneficiary of homeowners wanting to do repairs during the pandemic, and it reported revenue of $ 132.1 billion for fiscal year 2020, a 19.9 percent increase over the same period. last. Residential remodeling is expected to hit a decade high by the end of 2021, meaning The Home Depot is ready for another big year.
There’s also a lot to like about the company’s strong corporate strategy, including its international expansion to countries like Mexico. Home Depot also recently acquired HD Supply Holdings Inc, which will make it the leading supplier of maintenance, repair and operation products in the end-market for customers and families. With a tried and true brand, a lot of market trends are in its favor and the fact that stocks are breaking to all-time highs at the moment, Home Depot is an option. Good for investors who want to build around a strong green -chip warehouse.
Bank of America (NYSE: BAC)
Another large cap stock to consider holding as a core portfolio position is Bank of America, is one of the largest financial institutions in the world and a major player in the US economy. This company serves consumers with a wide range of banking, investment, asset management, and other financial and risk management products and services. It’s a good choice for any portfolio thanks to the company’s industry-leading branding and potential future dividends and stock repurchases. It’s also worth mentioning that the company just announced a $ 25 billion stock buyback last week.
Bank of America is also a large cap stock worth buying at this point because the financial sector is recovering from the effects of the pandemic. Remember that a strong economy, rising inflation and rising interest rates are all factors that can benefit a company like Bank of America. The stock has risen more than 30% by 2021, but that hasn’t stopped investors from adding stock of what is still very likely an undervalued large stock.
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