3 Best Large-Cap Stocks for 2023
Investing in stocks is among the best ways to grow your investment portfolio over time. Between 1928 and 2023, stocks returned an average of roughly 9.77% annually. Stocks with a history of exhibiting strong growth over time also might be a good investment, although it is important to note that past performance does not guarantee future success.
Large-Cap Stocks To Invest In
Following are three large-cap companies with growth potential listed on U.S. exchanges. All the companies in this list have a market capitalization of $10 billion or more.
1. Walt Disney (DIS)
- Price: $108.49
- Market Cap: $198.19 billion
Disney is a blue chip stock that has been a staple 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.
In recent years, Disney has also made significant investments in its parks and resorts segment. This includes theme parks such as Disneyland and Disney World, as well as its cruise line. The company’s studio entertainment segment, which produces and distributes films and television shows, has also been a strong performer.
Because its strong brand and diverse revenue streams help to drive growth, Disney’s 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)
- Price: $76.57
- Market Cap: $59.93 billion
Activision Blizzard is a publicly traded company that operates 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 primarily generates revenue through the sale of video games and in-game content. Advertising, sponsorships and media rights related to its esports leagues are also major contributors.
The company has a diverse portfolio of successful franchises and has been able to generate consistent revenue and profits in the past. However, like any company in the entertainment industry, Activision Blizzard’s financial performance can be impacted 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)
- Price: $61.32
- Market Cap: $265.18 billion
Coca-Cola may be one of the most recognizable brands in the world. The company operates in the non-alcoholic beverage 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 through the sale of concentrates and syrups to its bottling partners, who then produce, package, merchandise and distribute the final branded beverages to retail and food service customers. It also generates revenue through the sale of finished beverages in certain markets, such as North America, Europe and Africa.
Coca-Cola has a strong brand and steady revenue that have helped its stock perform well over time, and it has the potential to continue growing and generating strong returns for investors. A usual, Coca-Cola’s stock price can be affected by economic conditions, changes in consumer preferences and increased competition. But overall, Coca-Cola may be a solid stock option for a long-term investment strategy.
What Is a Large-Cap Stock?
A large-cap stock is one with a market value of at least $10 billion — a large-cap stock has a large market capitalization, which is simply the market value of a company’s outstanding shares. Market capitalization is measured as the share price times the number of shares outstanding.
If these stocks aren’t currently in your portfolio, then consider whether they would be a good fit for your investment strategy. It is important to consider the risks of investments and to do your own research before investing.
FAQSome frequently asked questions about large-cap stocks include:
- What is the best large-cap stock?
- Some options to consider are Walt Disney, Activision Blizzard and Coca-Cola – Apple, Microsoft and Tesla are also all worth looking at for your portfolio.
- It is difficult to say which large-cap stock is objectively the best, since the answer can vary depending on your investment strategy and risk tolerance. It's also worth noting that past performance does not guarantee future results. It's always a good idea to do your own research and consult with a financial advisor before making any investment decisions.
- What is large-cap vs. small-cap?
- Large-cap companies have large market capitalizations and tend to be a little bit safer on average than small-cap stocks, which have market capitalizations between $250 million and $2 billion.
- Large-cap stocks can also be easier to buy and sell, which might help prevent liquidity issues for investors down the road.
Michael McDonald contributed to the reporting for this article.
Information is accurate as of Jan. 31, 2023.
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