Large cap stocks bring stability to your portfolio

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The market is more and more unpredictable these days, sometimes up, more often down and in between, trading sideways as well.

But the macro data that keeps coming out is overwhelmingly positive. Not only that: earnings results show that businesses are definitely on the go. And demand, which includes strong pent-up demand, is stronger than ever.

Most sectors are showing signs of recovery with only some transportation (especially airlines) and consumer discretionary (except leisure and recreation) still feeling the adverse effects of the pandemic.

The peculiarities of the market make it a good time to look for large cap stocks that might be overpriced at other times. Some still offer good opportunities for growth, particularly after the lows of the pandemic, and many, but not all, are also paying a dividend.

Overall, large caps bring stability to your portfolio because they don’t react as aggressively to news and other events. Dividends also generate a constant stream of income which generally increases over time. So ideally most of your portfolio (60-70%) should be made up of these stocks.

Here are some big caps you might want to check out as they just brought in stellar income results –

Under Armor, Inc. UAA

Based in Baltimore, Maryland, Under Armor is a leading designer, marketer and distributor of sporting goods and lifestyle products, including authentic athletic shoes, apparel and accessories for professionals in the United States and around the world.

The company released March quarter results that beat Zacks’ consensus estimate by 300.0% on revenue which fell 11.8%. The company has raised both revenue and profit guidance for 2021. Revenue growth is now expected to be in the high percentage rate of teens compared to earlier expectations of a high single-digit increase. EPS is expected to rise from 12 to 14 cents to 28 to 30 cents (up 16 cents at midpoint).

Current estimates represent 176.9% EPS growth this year and 94.6% next. However, even these estimates will prove to be conservative given the high outlook.

The stocks have a Zacks No.2 rank (buy) and an A growth score. They belong to the textile – clothing industry (18% of industries classified as Zacks).

Bruker Corp. BRKR

Bruker, headquartered in Billerica, Mass., Designs and manufactures proprietary life sciences and materials research systems, as well as related products for life science research, pharmaceuticals, applied markets, nanotechnology, cell biology, clinical research, microbiology and in vitro diagnostics.

The company reported March quarter results that beat Zacks’ consensus estimate by 37.5% on revenue which fell 0.6%. The company raised its expectations for 2021 revenue growth (by 4 percentage points), operating margin (by 60 bps) and EPS (by 10 cents).

Current estimates project EPS growth of 31.1% this year and 14.5% next year. However, these estimates could prove to be conservative given the improved outlook.

The stocks have a Zacks # 2 rank and have an A growth score. They belong to the Instruments – Scientific industry (26% of industries rated Zacks).

DENTSPLY SIRONA Inc. XRAY

Based in York, Pennsylvania, DENTSPLY SIRONA is a global leader in the design, development, manufacture and marketing of dental consumables, laboratory products, specialty products, as well as dental implants and associated scanning equipment. , treatment software, orthodontic appliances, treatment centers, imaging equipment and computer-aided design and machining systems for dentists. It also provides other consumable medical device products such as urology catheters, medical drills and other non-medical products.

The company released March quarter results that beat Zacks’ consensus estimate by 30.9% on revenue which fell 10.5%. The company raised expectations for revenue growth ($ 0.05 billion) and earnings per share ($ 1.25).

Current estimates represent 52.0% EPS growth this year and 12.3% next. These estimates are expected to increase given the improved outlook.

The stocks have a Zacks # 2 rank and a B growth score. They are owned by the medical and dental supplies industry (the top 35% of industries rated Zacks).

ON Semiconductor Corp. WE

ON Semiconductor, based in Phoenix, Arizona, is an original equipment manufacturer (OEM) of a wide range of discrete semiconductor components (e.g., bipolar transistors, diodes, filters, FETs, rectifiers, and thyristors) and integrated.

A number of acquisitions were made including Fairchild Semiconductor, the CMOS image sensor business unit of Cypress Semiconductor, SANYO Semiconductor, AMI Semiconductor, the power PC controller business of Analog Devices, CMD, Catalyst and SoundDesign

which has broadened its technical capabilities and the scope of its products, as well as its margins and exposure to the end market.

The company released March quarter results that beat Zacks’ consensus estimate by 2.9% on revenue that fell 1.3%.

Current estimates represent EPS growth of 123.5% this year and 19.0% the next. The estimate is up 9 cents since the company report.

The stocks have a Zacks # 2 rank and a B value score. They belong to the semiconductor industry – analog and mixed (the top 15% of industries rated Zacks).

Volkswagen AG VWAGY

Volkswagen-ADR is the largest automotive manufacturer in Europe with products and services throughout the automotive value chain. With nine independent brands, they are able to offer a unique range of models ranging from the extremely efficient 3-liter car to the great sporting tradition of Bentley. It also benefits from belonging to the Volkswagen Group with its global manufacturing base.

The company released March quarter results that beat Zacks’ consensus estimate by 27.9% on revenue which fell 12.8%. The operating return on sales is expected to be between 5.5% and 7% this year, compared to a previous range of 5% to 6.5%.

Current estimates predict EPS growth of 64.1% this year and 11.3% next. The increased directives will lead to an upward revision.

The stocks carry a Zacks # 2 rank and have value and growth scores of A. They are owned by the automotive industry – foreign (42% of industries ranked Zacks).

Trane Technologies plc TT

Based in Swords, Ireland, Trane Technologies provides climate control solutions for buildings, homes and transportation.

The company released March quarter results that beat Zacks’ consensus estimate by 62.9% on revenue which broke 5.0%. The company provided revenue and EPS forecasts that exceeded current estimates.

Current estimates predict EPS growth of 22.9% this year and 12.8% next. The 2021 EPS forecast of $ 6.00 is 58 cents above Zacks’ consensus estimate of $ 5.48.

The stocks have a Zacks # 2 (buy) rank and an A growth score. They are in the technology services industry (bottom 38% of industries ranked Zacks).

Price performance over one month

Growth of + 1500%: one of the most interesting investment opportunities of 2021

In addition to the stocks you talked about above, would you like to see Zacks’ top picks for capitalizing on the Internet of Things (IoT)? It is one of the fastest growing technologies in history, with approximately 77 billion devices to be connected by 2025. That equates to 127 new devices per second.

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DENTSPLY SIRONA Inc. (XRAY): Free Stock Analysis Report

Trane Technologies plc (TT): Free Inventory Analysis Report

ON Semiconductor Corporation (ON): Free Stock Analysis Report

Bruker Corporation (BRKR): Free Stock Analysis Report

Under Armor, Inc. (UAA): Free Inventory Analysis Report

Volkswagen AG (VWAGY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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