Finding the next up-and-coming stock out of nowhere is every investor dream, but sometimes it’s just easier to play it safe with the established companies we all know and love. With the uncertainty of upcoming U.S. interest rate hikes looming over the entire global market, now could be the time to stick to the less-volatile mega-cap stocks.
We typically define “mega-cap” as companies with a market cap over $100 billion, meaning that these stocks belong to some of the largest and most recognizable brands in the world. Luckily, the Zacks Rank can be applied to companies of all shapes and sizes.
With that said, we’ve highlighted three mega-cap giants that could be solid buys right now. If you’re an investor looking to play things a bit safer as the market figures out exactly what it wants to do right now, check out these stocks:
1. Taiwan Semiconductor (TSM – Free Report)
With a market cap of over $148 billion, Taiwan Semiconductor Manufacturing Company is the world’s largest dedicated integrated circuit foundry and one of the true giants in the global semiconductor industry. The stock currently has a Zacks Rank #2 (Buy), and investors can feel even more confident based on the overall performance of semiconductor stocks this year. Our best stocks are found in the best industries, and Taiwan Semiconductor feels like a strong semiconductor play right now.
2. Kraft Heinz (KHC – Free Report)
The Kraft Heinz Company is a food and beverage giant that produces some of the world’s most recognizable snacks and drinks, including Oscar Mayer, Capri Sun, Kool-Aid, Jell-O, Heinz Ketchup, Planters, and more. The company’s market cap is near $105 billion, and the stock has earned a Zacks Rank #2 (Buy). Despite its size, Kraft Heinz is still experiencing impressive growth; our consensus estimates predict revenue growth of nearly 20% and earnings growth of nearly 48% this year.
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