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 April 2024
| Company Name | Stock Symbol | Sector | Market Cap (in USD) | Fair Value Upside | Cash Flow / Debt |
|---|---|---|---|---|---|
| Tesla Inc. | TSLA | Consumer Cyclicals | 556.06 billion | 11.9% | 138.5% |
| Exxon Mobil Corp | XOM | Energy | 482.08 billion | 4.4% | 116.1% |
| UnitedHealth Group Incorporated | UNH | Healthcare | 407.24 billion | 11.6% | 43.1% |
| Johnson & Johnson | JNJ | Healthcare | 358.55 billion | 14.5% | 74.9% |
| Chevron Corp | CVX | Energy | 299.06 billion | 15.1% | 136.6% |
| Salesforce Inc | CRM | Technology | 290.18 billion | 13.3% | 75.5% |
| Adobe Systems Incorporated | ADBE | Technology | 216.96 billion | 15.1% | 166% |
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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:
1. Tesla Inc (TSLA)
- Market Cap: $556.06 billion
- Previous Close Price: $171.76
- Fair Value: $184.54
- Fair Value Upside: 11.9%
The electric vehicle (EV) manufacturer was incorporated as Tesla Motors in July 2003, with Elon Musk joining as its largest shareholder in February 2004. Tesla’s Model 3 is the all-time bestselling plug-in electric car globally, and became the 1st electric car to sell 1 million units worldwide in June 2021.
Traded on the NASDAQ exchange, the large-cap stock has dipped 20.2% over the last three months, but has given breathtaking returns of a whopping 880% to its long-term investors over the past five years.
2. Exxon Mobil Corp (XOM)
- Market Cap: $482.08 billion
- Previous Close Price: $122.2
- Fair Value: $126.75
- Fair Value Upside: 4.4%
The oil and natural gas production company is the largest oil and gas producer in the United States, and its third largest company overall. It was ranked third on the Fortune 500 list in 2023.
Traded on the NYSE, the large-cap stock has risen 23% in the last three months, while jumping 95% in a five year period.
3. UnitedHealth Group Incorporated (UNH)
- Market Cap: $407.24 billion
- Previous Close Price: $450.05
- Fair Value: $508.41
- Fair Value Upside: 11.6%
UnitedHealth Group is a multinational health insurance and services provider based in Minnesota. It is the largest healthcare company in the world by market capitalization.
The healthcare giant was also ranked at the 10th place on Fortune’s Global 500 list for 2023. Even though the company’s shares have declined a little over 16% so far in 2024, they have skyrocketed 115% over a five year period.
4.
- Market Cap: $358.55 billion
- Previous Close Price: $150.2
- Fair Value: $174.44
- Fair Value Upside: 14.5%
Founded in 1886, Johnson & Johnson develops, manufactures, and sells various products in the healthcare field worldwide, while also conducting research and development of new products.
Johnson & Johnson is among the only two US based companies that has a pristine AAA credit rating, a key asset notable at the time of rising interest rates.
5. Chevron Corp (CVX)
- Market Cap: $299.06 billion
- Previous Close Price: $162.67
- Fair Value: $185.98
- Fair Value Upside: 15.1%
Chevron Corporation is a multinational energy corporation, originally named ‘Standard Oil Company of California’. In terms of revenue, Chevron Corp is the second largest oil company in the United States, and the only remaining oil and gas stock on the Dow Jones Industrial Average.
The stock has gained almost 10% so far in 2024, while rallying 70% over the last five years.
6. Salesforce Inc (CRM)
- Market Cap: $290.18 billion
- Previous Close Price: $299.62
- Fair Value: $342.07
- Fair Value Upside: 13.3%
Founded in February 1999 by a former executive of Oracle, Marc Benioff, Salesforce, Inc. is a cloud-based software company which provides customer relationship management (CRM) software and a diverse range of applications. It became the world’s largest enterprise software firm in 2022.
The company entered the Dow Jones Index in 2020, replacing ExxonMobil, making Salesforce the largest technology component of the index at its accession.
7. Adobe Systems Incorporated (ADBE)
- Market Cap: $216.96 billion
- Previous Close Price: $487.22
- Fair Value: $558.44
- Fair Value Upside: 15.1%
Adobe Systems is a diversified software company specializing in software for the creation and publication of a wide range of content. Its flagship products include Adobe Photoshop, Adobe Illustrator, Adobe Acrobat Reader and the Portable Document Format (PDF).
Over a one-year period, Adobe’s shares grew 31%, while shooting up 80% on a 5-year term. Over the last 10 years, the stock rallied a whopping 685%.
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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.
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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.
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