This article presents an overview of the 5 Best Large-Cap Stocks to Buy in 2024. For a detailed overview of such stocks, read our article, 15 Best Large-Cap Stocks to Buy in 2024.
5. Walmart Inc (NYSE:WMT)
Number of Hedge Fund Investors: 80
CFRA recently published a list of 4-star and 5-star dividend aristocrats. Walmart Inc (NYSE:WMT) made it to the list. Walmart Inc (NYSE:WMT) is also among the most popular stocks owned by hedge funds as 80 hedge funds had stakes in Walmart Inc (NYSE:WMT) as of the end of the third quarter.
4. Merck & Co Inc (NYSE:MRK)
Number of Hedge Fund Investors: 85
Earlier this month Merck & Co Inc (NYSE:MRK) posted strong fourth quarter results. Adjusted EPS in the quarter came in at $0.03, surpassing estimates by $0.14. Revenue jumped 6% year over year to $14.6 billion, beating estimates by $120 million.
For full-year 2024 Merck & Co Inc (NYSE:MRK) expects adjusted EPS to come in the range of $8.44 and $8.59 versus the consensus estimate of $8.42 consensus.
Carillon Eagle Mid Cap Growth Fund made the following comment about Merck & Co., Inc. (NYSE:MRK) in its Q3 2023 investor letter:
“Merck & Co., Inc. (NYSE:MRK) underperformed in the third quarter, based on what we view as largely macroeconomic-related factors. The company continues to execute well, both clinically and fundamentally, but much of the biopharmaceutical industry has been weak as investors are gravitating to other, more cyclical sectors.”
3. Union Pacific Corp (NYSE:UNP)
Number of Hedge Fund Investors: 90
Citi believes railroad company Union Pacific Corp (NYSE:UNP) is one of the top large-cap stocks to buy in 2024. Citi expects Union Pacific Corp’s (NYSE:UNP) EPS to total $11.60 in 2024, while the stock’s PE ratio is expected to be at 20.4.
Last month Union Pacific Corp (NYSE:UNP) posted fourth quarter results. GAAP EPS in the fourth quarter came in at $2.71, beating estimates by $0.15. Revenue came in at $6.16 billion, beating estimates by $110 million.
Cooper Investors made the following comment about Union Pacific Corporation (NYSE:UNP) in its Q3 2023 investor letter:
“The major focus in Texas was spending a day visiting operations of Union Pacific Corporation (NYSE:UNP), a Stalwart investment made earlier this year.
Our investigations into the railroad industry have felt like a history lesson of the late 19th Century, a peek into the Gilded Age. At this time railroads became a transformative force that connected the East Coast to the Western frontier, pushing the economic potential of US industry and commerce to new heights. Over a century later and despite technological upheaval, the freight railroads of North America still feel just as relevant and a key part of the new industrial age.
To own, operate and invest in a railroad is to be a part of the lifeblood of North America. It is to witness the movement of grain, concrete, steel, wood, energy, autos, and shipping containers across vast distances. These are irreplaceable assets that could not be built today, and for the most part have very few substitutes – UNPs tagline “Building America” certainly rings true…” (Click here to read the full text)
2. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 286
Amazon.com Inc’s (NASDAQ:AMZN) Q4 results show the company’s ecommerce business is thriving while its AWS business is again showing acceleration thanks to AI. This has cemented Amazon.com Inc’s (NASDAQ:AMZN) position in the Magnificent Seven group. Piper Sandler analyst Thomas Champion recently said in a note that new deals of AWS with companies related to AI helped the Cloud segment post stronger growth. The analyst has a $220 price target on the stock.
Polen Focus Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and overinvestment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 306
Microsoft Corp (NASDAQ:MSFT) is the most popular stock among the 910 hedge funds tracked by Insider Monkey. As of the end of the third quarter of 2023, 306 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Microsoft Corp (NASDAQ:MSFT). Citi also recommended Microsoft as a top large-cap stock to buy in 2024. Citi sees Microsoft’s EPS at $11.99 in 2024.
Microsoft is generating a lot of praise after posting latest quarterly results. Dan Ives of Wedbush recently said Microsoft Corp (NASDAQ:MSFT) has a huge penetration in the enterprise world where companies and users will implement Microsoft Corp’s (NASDAQ:MSFT) AI technologies.
“With over 60% of the MSFT installed base seeking to implement AI functionality across the entire enterprise and commercial landscape over the next few years based on our estimates, we believe that this is the early innings of a major monetization opportunity as the company doubles down on its AI strategy with its Copilot generate significant demand,” Ives said.
Madison Sustainable Equity Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:
“Microsoft Corporation’s (NASDAQ:MSFT) sustainable scorecard was updated with an unchanged rating of Above Average. The company’s board has an official Environmental, Social, and Public Policy Committee in addition to the traditional Audit, Compensation, and Governance committees. For ten years, Microsoft has publicly released data measuring the diversity of its workforce. With the prominence of Artificial Intelligence (AI), the company has launched a 5-point blueprint for governing AI to address public policy and regulation. Environmentally, Microsoft has multiple programs to be carbon negative by 2030. The company has signed Purchase Power Agreements for carbon-free energy totaling 13.5 Gigawatts.”
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