Mega-Cap Stocks That Can Weather Uncertainty: Mastercard, Walmart, and Merck
As we navigate the ups and downs of the stock market amidst global uncertainties, three standout mega-cap stocks have proven they have what it takes to weather any economic cycle. Valued at over $300 billion by market cap, Mastercard, Walmart, and Merck & Co. have all demonstrated their ability to navigate uncertain macro environments and provide reliable returns for investors.
Mastercard: A Global Financial Services Giant
Mastercard, a global payments processor, is a heavyweight in the financial services industry. In addition to facilitating transactions between consumers and merchants, Mastercard provides a range of services including analytics, business intelligence, and cybersecurity.
Although Mastercard’s stock price has underperformed the broader market in recent months, analysts believe there is more upside potential. With a strong track record of crushing earnings expectations, Mastercard is set to report its quarterly earnings on January 31st. Analysts are anticipating further growth in the coming year, with an expected increase in earnings per share of about 16.7%.
Mastercard also offers a reliable dividend payment, backed by over a decade of consistent growth. With a low payout ratio and healthy free cash flow, additional dividend hikes could be in the company’s future. Analysts have a consensus “strong buy” rating for Mastercard, with a mean target price indicating a potential upside of about 4.2%.
Walmart: Dominating Retail Both Online and Offline
Walmart, a dominant player in retail, operates both physical stores and a thriving e-commerce division. With a market cap of $438.4 billion, Walmart has outperformed the broader retail sector in the past year.
Despite a recent dip in its stock price due to a cautious consumer outlook, Walmart’s earnings report beat Wall Street’s profit and revenue estimates. The company is expected to report further growth in the coming year, with analysts projecting an increase in earnings per share of 8.4%.
Walmart is also known for its reliable dividend payments, backed by five decades of consistent annual growth. Analysts overwhelmingly recommend buying Walmart stock, with a mean price target indicating a potential upside of about 9.6%.
Merck & Co.: A Pharma Giant with a Focus on Innovation
Merck & Co., a global pharmaceutical giant, focuses on areas such as oncology, vaccinations, infectious diseases, and cardio-metabolic diseases. With a market cap of $304.4 billion, Merck has performed well in the past year, hitting a new record high after positive results from a mid-stage clinical trial.
In its last earnings report, Merck beat expectations with strong revenue and adjusted earnings per share. The company is set to release its Q4 2023 earnings on February 1st, with analysts expecting continued growth in the coming year.
Merck also offers a generous dividend yield of 2.56%, backed by consistent dividend increases over the years. Analysts unanimously recommend buying Merck stock, with a mean price target indicating a potential upside of about 5%.
In conclusion, these mega-cap stocks – Mastercard, Walmart, and Merck & Co. – have proven their ability to navigate uncertain macro environments and provide reliable returns for investors. With strategic plans focused on growth areas such as digital payments, e-commerce, and biopharma innovation, these companies are well-positioned for the future.
Analyst comment
Positive news: Mega-cap stocks Mastercard, Walmart, and Merck have shown resilience in uncertain times. They all have potential for further growth, with strong earnings and dividend histories. Analysts recommend buying these stocks, predicting upside potential for investors. These companies’ strategic plans for growth make them well-positioned for the future. Expect positive market performance for Mastercard, Walmart, and Merck.
