A few hours ago, I was in the process of making a life-changing decision and when asked why I wanted to make that decision, the stock investor in me jumped out, ‘I want to reduce uncertainties as much as possible’ I replied. In essence, I wanted more stability.
I don’t like roaming in the realm of enormous uncertainties whether in my personal life or while investing my hard-earned $$$, and this doesn’t mean that I don’t take risks. When it comes to investing in the stock market, I will ‘always’ favor large-cap stocks, at least, 6 out of 10 times.
Large-cap stocks are typically stocks of companies that are valued at greater than $50 billion. The typical large-cap stock has multi-years of trading history, is generally stable and mature, has great analyst/media coverage, and has lower volatility.
Examples of large-cap stocks are Apple (NASDAQ: AAPL), Walmart (NYSE:WMT), Microsoft (NASDAQ:MSFT), IBM (NYSE:IBM), and Exxon Mobil (NYSE:XOM). These companies are so large and well-established that they are less likely to go out of business. Even with a global pandemic in play, they have enough in their tank to ride through the waves.
However, the same cannot be said about small-cap stocks, most of the companies that went out of business or struggled immensely this year as a result of the global pandemic were small-cap businesses.
According to an article written in May on The Financial Times, “The stocks of bigger companies have fared better than small-caps this year as investors have taken refuge in large-caps, which have been powered by technology groups. The Russell 2000 index is down 14.5 percent for the year, while the Russell 1000 benchmark of large-caps is off just 3.3 percent”.
When push came to shove, investors ran to large-cap stocks because of their less volatile nature. However, the Russell 1000 is currently up 16.72 percent and the Russell 2000 index is up 18%, this suggests that smaller cap stocks are performing better YTD in this bull market.
Investing in small-cap stocks comes with its advantages, one of which is the potential for significant growth. Most large-cap stocks have less growth potential when compared to small-cap stocks and that’s why in a bull swing, small-caps typically tend to outperform large-cap stocks.
However, investing in large-cap growth stocks, like the ones listed below, is the investing art of merging the best of both worlds, the stability of large-caps and the growth potential of small-caps.
There is no hiding that I love large-cap stocks, however, I love large-cap growth stocks even more. The one thing I love as much as I love stability is growth, stagnation sickens me.
If you are looking for large-cap growth stocks to invest in, here are the best large-cap stocks for growth-seeking investors like you:
1. Adobe
Adobe Inc. operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content.
Its flagship product is Creative Cloud, a subscription service that allows customer to download and access the latest versions of its creative products.
This segment serves traditional content creators, Web application developers, and digital media professionals, as well as their management in marketing departments and agencies, companies, and publishers.
The company’s Digital Experience segment offers solutions for how digital advertising and marketing are created, managed, executed, measured, and optimized.
This segment provides analytics, social marketing, targeting, media optimization, digital experience management, cross-channel campaign management, marketing automation, audience management, and video delivery and monetization solutions to digital marketers, advertisers, publishers, merchandisers, Web analysts, chief marketing officers, chief information officers, and chief revenue officers.
Its Publishing segment offers products and services, such as e-learning solutions, technical document publishing, Web application development, and high-end printing, as well as publishing needs of technical and business, and original equipment manufacturers (OEMs) printing businesses.
The company offers its products and services directly to enterprise customers through its sales force, as well as to end-users through app stores and through its Website at adobe.com.
It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers, and OEMs. Adobe Inc. has a strategic partnership with Walgreens Boots Alliance, Inc.
The company was formerly known as Adobe Systems Incorporated and changed its name to Adobe Inc. in October 2018.
The company was founded in 1982 and is headquartered in San Jose, California.
2. Nike
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide.
The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear.
It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team and league logos, as well as sells sports apparel.
In addition, the company sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and various plastic products to other manufacturers.
Further, it provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks; and action sports and youth lifestyle apparel and accessories under the Hurley trademark.
Additionally, the company licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives.
The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
3. Qualcomm
QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. This segment also provides products designed for the implementation of small cells.
The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, long term evolution, and/or fifth generation standards and their derivatives.
The QSI segment invests in early-stage companies in various industries, including artificial intelligence, automotive, digital healthcare, enterprise software and solutions, mobile and networking and investment for supporting the design and introduction of new products and services for voice and data communications, and new industry segments.
The company also provides development, and other services and related products to the United States government agencies and their contractors.
QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California.
4. Salesforce
salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide.
The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices.
It also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as a field service solution that enables companies to connect agents, dispatchers, and mobile employees through a centralized platform, which helps to schedule and dispatch work, and track and manage jobs in real-time.
In addition, the company offers Marketing Cloud to plan, personalize, and optimize one-to-one customer marketing interactions; and Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers.
Further, it provides Customer 360 Platform that offers no-code to pro-code Platform-as-a-Service tools for building, securing, integrating, and managing the business apps; MuleSoft Anypoint Platform enables customers to connect any system, application, data, or device; Quip collaboration platform, which combines documents, spreadsheets, apps, and chat with live CRM data; and Tableau and Einstein Analytics, provides analytical technology to customers.
Additionally, the company offers various solutions for financial services, healthcare and life sciences, manufacturing, consumer goods, government, and philanthropy.
The company also provides professional services and education services, including instructor-led and online courses; and support and adoption programs.
It provides its services through direct sales; and consulting firms, systems integrators, and other partners. Salesforce and Siemens has a strategic partnership.
The company was founded in 1999 and is headquartered in San Francisco, California.
5. Broadcom
Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide.
The company operates through three segments: Semiconductor Solutions, Infrastructure Software, and Intellectual Property licensing.
It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; Wireless local area network access point SoCs; Ethernet switching and routing application specific standard products; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layers; and fiber optic laser and receiver components.
The company also offers RF front end modules, filters, and power amplifiers; Wi-Fi, Bluetooth, and global positioning system/global navigation satellite system SoCs; custom touch controllers; serial attached small computer system interface, and redundant array of independent disks controllers and adapters; peripheral component interconnect express switches; fiber channel host bus adapters; read channel based SoCs; custom flash controllers; preamplifiers; and optocouplers, industrial fiber optics, motion control encoders and subsystems, and light emitting diodes.
In addition, it provides mainframe and enterprise software solution and cybersecurity solutions. Its products are used in various applications, including enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
The company has a collaboration agreement with Liqid Inc. Broadcom Inc. was incorporated in 2018 and is headquartered in San Jose, California.
6. Amazon
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally.
The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores.
The company also manufactures and sells electronic devices, including Kindle, Fire tablets, Fire TVs, Rings, and Echo and other devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content.
In addition, it offers programs that enable sellers to sell their products on its Websites, as well as its stores; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content.
Further, the company provides compute, storage, database, and other AWS services, as well as fulfillment, advertising, publishing, and digital content subscriptions.
Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. The company also operates in the food delivery business in Bengaluru, India.
It serves consumers, sellers, developers, enterprises, and content creators.
The company also has utility-scale solar projects in China, Australia, and the United States.
Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.
7. Facebook
Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide.
The company’s products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and private messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application that is used by people and businesses to communicate in a private way.
It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products.
Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
8. Tesla
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, Netherlands, Norway, and internationally.
The company operates in two segments, Automotive; and Energy Generation and Storage.
The Automotive segment offers sedans and sport utility vehicles. It also provides electric powertrain components and systems; and services for electric vehicles through its company-owned service locations, and Tesla mobile service technicians, as well as sells used vehicles. This segment markets and sells its products through a network of company-owned stores and galleries, as well as through its own Website.
The Energy Generation and Storage segment offers energy storage products, such as rechargeable lithium-ion battery systems for use in homes, industrial, commercial facilities, and utility grids; and designs, manufactures, installs, maintains, leases, and sells solar energy generation and energy storage products to residential and commercial customers. It also provides vehicle insurance services, as well as renewable energy.
Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California.
9. General Motors
General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.
The company also sells trucks, crossovers, and cars to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, crisis assist, stolen vehicle assistance, roadside assistance, and turn-by-turn navigation, as well as connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity.
Further, the company provides automotive financing services; and operates an online new vehicle store. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
10. Nvidia
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor.
The GPU segment offers processors, which include GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based gaming; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla for artificial intelligence (AI) utilizing deep learning, accelerated computing, and general purpose computing; GRID, which provides power of NVIDIA graphics through the cloud and datacenters; DGX for AI scientists, researchers, and developers; and EGX for accelerated AI computing at the edge.
The Tegra Processor segment provides processors comprising SHIELD devices and services designed to harness the power of mobile-cloud to revolutionize home entertainment, AI, and gaming; AGX, a power-efficient AI computing platform for intelligent edge devices; DRIVE AGX for self-driving vehicles; Clara AGX for medical instruments; and Jetson AGX for robotics and other embedded use.
The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation sells its products to original equipment manufacturers, original device manufacturers, system builders, add-in board manufacturers, retailers/distributors, Internet and cloud service providers, automotive manufacturers and tier-1 automotive suppliers, mapping companies, start-ups, and other ecosystem participants.
NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.
I’m a Technology Stock Analyst, with focus on companies developing cutting-edge techs. Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
