Investing in stocks is among the best ways to grow your investment portfolio over time. Between 1928 and 2023, stocks produced an average annual return of about 9.77%. Stocks that have shown strong growth over time could also be a good investment, although it’s important to note that past performance is no guarantee of future success.
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Large cap stocks to invest in
Below are three large-cap companies listed on US stock exchanges that have growth potential. All of the companies in this list have a market cap of $10 billion or more.
1. Walt Disney (DIS)
Disney is a blue-chip stock that’s been an integral part of American culture for decades. The company operates in several different business segments, including media networks, parks and resorts, studio entertainment, consumer products and interactive media. The media networks segment — which includes the Disney Channel, ABC, and ESPN — has historically been a major driver of Disney’s revenue and profits.
Disney has also made significant investments in its parks and resorts segment in recent years. This includes theme parks like Disneyland and Disney World, as well as the cruise line. The company’s studio entertainment segment, which produces and distributes films and television shows, has also developed strongly.
With its strong brand and diverse revenue streams helping to drive growth, Disney stock has performed well over the long term. However, like any stock, Disney’s stock price can be affected by a variety of factors, including economic conditions, competition, and changes in consumer preferences.
2. Activision Blizzard (ATVI)
Activision Blizzard is a public company engaged in the video game industry. It develops and publishes some of the most popular video games in the world, including the Call of Duty and World of Warcraft franchises. Activision Blizzard also operates one of the largest esports leagues in the world, the Overwatch League.
Activision Blizzard generates revenue primarily from the sale of video games and in-game content. Advertising, sponsorship and media rights related to its esports leagues are also major contributors.
The Company has a diverse portfolio of successful franchises and a history of consistent revenue and profits. However, as with any company in the entertainment industry, Activision Blizzard’s financial performance can be affected by changes in consumer preferences and the success of its new releases.
With the company’s strong portfolio of successful franchises and the growth of the video game industry, Activision Blizzard’s stock has also performed well historically.
3. Coca-Cola (KO)
Coca-Cola is perhaps one of the most recognizable brands in the world. The company operates in the soft drinks industry and is best known for its flagship product, Coca-Cola. However, it also has a wide range of other products, including Sprite and Fanta sodas and Dasani water.
Coca-Cola generates revenue by selling concentrates and syrups to its bottling partners, who then produce, package, market, and distribute the final branded beverages to retail and hospitality customers. It also generates revenue by selling ready-to-drink beverages in specific markets like North America, Europe, and Africa.
Coca-Cola has a strong brand and steady earnings that have helped its stock perform well over time, and it has the potential to continue to grow and deliver strong returns for investors. A normal Coca-Cola stock price can be affected by economic conditions, changes in consumer preferences and increased competition. But overall, Coca-Cola could be a solid stock option for a long-term investment strategy.
What is a large cap stock?
A large-cap stock has a market value of at least $10 billion — a large-cap stock has a large market cap, which is simply the market value of a company’s outstanding shares. Market capitalization is measured as the share price multiplied by the number of shares outstanding.
Which stocks are large caps? Aside from those listed above, some examples of large-cap stocks include Apple, Microsoft, and Tesla.
If these stocks aren’t currently in your portfolio, consider whether they would fit well with your investment strategy. It is important to consider the risks of investing and to do your own research before investing.
Some common questions about large-cap stocks are:
What’s the best large-cap stock?
Some options to consider are Walt Disney, Activision Blizzard, and Coca-Cola – Apple, Microsoft and Tesla are also worth a look for your portfolio.
It’s difficult to say which large-cap stock is objectively the best, as the answer can vary based on investment strategy and risk tolerance. It is also worth noting that past performance is no guarantee of future results. It’s always a good idea to do your own research and consult a financial advisor before making any investment decisions.
What is large cap vs small cap?
Large-cap companies have large market caps and, on average, tend to be slightly safer than small-cap stocks, which have market caps ranging from $250 million to $2 billion.
Large-cap stocks can also be easier to buy and sell, which could help avoid liquidity problems for investors down the road.
Michael McDonald contributed coverage for this article.
Information is correct as of January 31, 2023.
This article originally appeared on GOBankingRates.com: 3 Best Large-Cap Stocks for 2023