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Large-cap stocks are a staple in almost every portfolio. They are well-established, have more analyst coverage, and frequently pay dividends, all undeniably significant benefits that make them so popular among investors.
And recently, three large-cap stocks – Aptiv (APTV - Free Report) , Newmont (NEM - Free Report) , and Advanced Micro Devices (AMD - Free Report) – have all seen favorable upgrades from analysts.
Let’s take a closer look at each.
Aptiv
Aptiv is a designer and manufacturer of vehicle components and provides electrical, electronic, and safety technology solutions to the global automotive market. BofA Securities upgraded APTV shares to buy from neutral, with a $140 per share price target.
The company’s quarterly results have consistently come in above expectations as of late, exceeding both earnings and revenue expectations in three consecutive quarters. Just in its latest release, APTV delivered a modest EPS surprise and reported revenue nearly 7% ahead of expectations.
As we can see in the chart below, the company’s revenue has recovered nicely from pandemic lows.
Image Source: Zacks Investment Research
Keep an eye out for the company’s upcoming release expected in early August; the Zacks Consensus EPS estimate of $1.00 indicates a 350% improvement in earnings from the year-ago period. Analysts have been bullish, with the quarterly estimate being revised 5% higher since April.
Image Source: Zacks Investment Research
In addition, Aptiv is projected to witness significant growth, with earnings forecasted to climb 27% in its current fiscal year (FY23) and a further 37% in FY24. Top line growth is also apparent, with sales forecasted to climb 10% and 12% in FY23 and FY24, respectively.
Newmont
Barclays upgraded NEM shares to overweight from equal-weight, with a $61 per share price target. The company has enjoyed positive earnings estimate revisions across the board, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares could entice value-conscious investors, further reflected by the Style Score of “B” for Value. Shares presently trade at an 18.2X forward earnings multiple, well beneath the 23.1X five-year median and highs of 26.7X in 2022.
Image Source: Zacks Investment Research
And for those with an appetite for income, NEM shares provide precisely that; shares currently yield a solid 3.8% annually, with the company’s payout growing by an impressive 40% over the last five years.
Image Source: Zacks Investment Research
Advanced Micro Devices
Northfield Capital Markets upgraded AMD shares to outperform from market perform, with a price target of $150 per share. The stock has been a big-time outperformer year-to-date amid the tech rally, with shares up more than 70%.
Shares are trading near their 50-day moving average, a level that’s been primarily respected in past instances. This is illustrated in the chart below.
Image Source: Zacks Investment Research
It’s worth noting that value-focused investors may not find AMD shares enticing, with the current 40.0X forward earnings multiple residing on the higher end of the spectrum. Still, market participants have had little issue forking up the premium given the company’s established nature in a critical industry.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in nearly every portfolio, as they provide a solid level of defense and carry an established nature.
And recently, all three above – Aptiv (APTV - Free Report) , Newmont (NEM - Free Report) , and Advanced Micro Devices (AMD - Free Report) – have seen favorable upgrades among analysts.
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3 Large-Cap Stocks Seeing Recent Upgrades
Large-cap stocks are a staple in almost every portfolio. They are well-established, have more analyst coverage, and frequently pay dividends, all undeniably significant benefits that make them so popular among investors.
And recently, three large-cap stocks – Aptiv (APTV - Free Report) , Newmont (NEM - Free Report) , and Advanced Micro Devices (AMD - Free Report) – have all seen favorable upgrades from analysts.
Let’s take a closer look at each.
Aptiv
Aptiv is a designer and manufacturer of vehicle components and provides electrical, electronic, and safety technology solutions to the global automotive market. BofA Securities upgraded APTV shares to buy from neutral, with a $140 per share price target.
The company’s quarterly results have consistently come in above expectations as of late, exceeding both earnings and revenue expectations in three consecutive quarters. Just in its latest release, APTV delivered a modest EPS surprise and reported revenue nearly 7% ahead of expectations.
As we can see in the chart below, the company’s revenue has recovered nicely from pandemic lows.
Image Source: Zacks Investment Research
Keep an eye out for the company’s upcoming release expected in early August; the Zacks Consensus EPS estimate of $1.00 indicates a 350% improvement in earnings from the year-ago period. Analysts have been bullish, with the quarterly estimate being revised 5% higher since April.
Image Source: Zacks Investment Research
In addition, Aptiv is projected to witness significant growth, with earnings forecasted to climb 27% in its current fiscal year (FY23) and a further 37% in FY24. Top line growth is also apparent, with sales forecasted to climb 10% and 12% in FY23 and FY24, respectively.
Newmont
Barclays upgraded NEM shares to overweight from equal-weight, with a $61 per share price target. The company has enjoyed positive earnings estimate revisions across the board, helping land the stock into a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Shares could entice value-conscious investors, further reflected by the Style Score of “B” for Value. Shares presently trade at an 18.2X forward earnings multiple, well beneath the 23.1X five-year median and highs of 26.7X in 2022.
Image Source: Zacks Investment Research
And for those with an appetite for income, NEM shares provide precisely that; shares currently yield a solid 3.8% annually, with the company’s payout growing by an impressive 40% over the last five years.
Image Source: Zacks Investment Research
Advanced Micro Devices
Northfield Capital Markets upgraded AMD shares to outperform from market perform, with a price target of $150 per share. The stock has been a big-time outperformer year-to-date amid the tech rally, with shares up more than 70%.
Shares are trading near their 50-day moving average, a level that’s been primarily respected in past instances. This is illustrated in the chart below.
Image Source: Zacks Investment Research
It’s worth noting that value-focused investors may not find AMD shares enticing, with the current 40.0X forward earnings multiple residing on the higher end of the spectrum. Still, market participants have had little issue forking up the premium given the company’s established nature in a critical industry.
Image Source: Zacks Investment Research
Bottom Line
Large-cap stocks are found in nearly every portfolio, as they provide a solid level of defense and carry an established nature.
And recently, all three above – Aptiv (APTV - Free Report) , Newmont (NEM - Free Report) , and Advanced Micro Devices (AMD - Free Report) – have seen favorable upgrades among analysts.