3 mega-cap stocks Wall Street loves: Nike, Alphabet and Meta


Ultra-large-cap stocks, such as Alphabet (GOOGL), Meta Platforms (FB) and Nike (NKE), are generally considered all-weather stocks due to their ability to withstand severe economic downturns and protect investors from market volatility. Therefore, we think investors looking to counter market volatility should add these stocks to their watch list. Wall Street analysts expect these names to gain more than 18% in price in the near term. Continue reading.

shutterstock.com – StockNews

Companies with more than 200 billion dollars in market capitalization are considered mega-cap companies. These companies are usually characterized by strong brand awareness and a presence in many countries around the world. These are usually proven industry leaders. These businesses have strong finances and cash balances, which helps them stay stable even during economic downturns.

Last month, major stock indexes were jittery over the Fed’s decision to raise interest rates multiple times this year and rising geopolitical tensions between the United States and Russia over Ukraine. According to analysis by DataTrek Research, the Fed’s hawkish stance means U.S. stocks will continue to experience volatility like January. Mega-cap companies are well known for their pricing power and are considered safe investments in a volatile market environment.

So we think Alphabet Inc.’s quality mega-cap stock (GOOGL), Meta Platforms, Inc. (Facebook) and NIKE, Inc. (NKE) could be great additions to his watch list. Wall Street analysts expect the price of these stocks to rise more than 18% in the short term.

Alphabet Inc. (GOOGL)

Mountain View, based in California GOOGL is the holding company behind Google and Other Bets. Google’s segments include Google Services and Google Cloud. Its products and platforms include Android, Chrome, Gmail, Google Drive, Google Maps, Search and Youtube. It has a market cap of $1.96 trillion.

On January 14, 2022, GOOGL subsidiary Waymo, a self-driving technology development company, announced that it has signed a multi-year agreement with JB Hunt Transport Services, Inc. (JBHT) to transport freight using self-driving trucks in Texas. As the shortage of drivers becomes acute, the demand for self-driving trucks is expected to increase in the medium term.

GOOGL’s revenue for its fourth fiscal quarter ended December 31, 2021 increased 32.3% year-over-year to $75.32 billion. Of the society operating result grew 39.8% year-over-year to $21.88 billion, while its net profit rose 35.5% to $20.64 billion. Additionally, its EPS rose 37.6% year-over-year to $30.69.

Analysts expect GOOGL’s EPS for its fiscal year 2023 to rise 17.1% year-over-year to $134.37. Its revenue for the quarter ending March 31, 2022 is expected to increase 22.7% year-over-year to $67.90 billion. Over the past year, the stock price has gained 54.2% to close the last trading session at $2,960. However, Wall Street analysts expect the stock to hit $3,508.97 in the short term, indicating a 18.5% upside potential.

Meta Platforms, Inc. (Facebook)

Formerly known as Facebook, Inc., Meta Platforms is focused on creating products that allow people to connect and share through mobile devices, personal computers, virtual reality headsets and home devices. the Menlo Park, California. Company segments include Family of Apps and Facebook Reality Labs. It has a market capitalization of $898.50 billion.

On December 16, the city of Zeewolde approved FB’s plan to build the largest data center in the Netherlands. The data center will run on green energy and is expected to use 1.38 GWh of electricity. The facility will likely help FB serve Facebook, Instagram and Whatsapp users across Europe.

For its fiscal year ended Dec. 31, 2021, FB’s total revenue increased 37% year-over-year to $117.92 billion. The company’s net profit rose 35% year over year to $39.37 billion. And its EPS was $13.77, up from $10.09 a year ago.

For fiscal 2023, FB EPS is expected to increase 20.1% year-over-year to $17.03. Its revenue for the quarter ending March 31, 2022 is expected to increase 27.4% year-over-year to $30.15 billion. It has exceeded consensus EPS estimates in three of the past four quarters. The stock is down 8.2% over the past six months to close the last trading session at $323. However, Wall Street analysts expect the stock to hit $402.86 in the near term, indicating a 24.7% upside potential.

NIKE, Inc. (NKE)

Renowned footwear manufacturer NKE in Beaverton, Oregon designs, markets and distributes athletic footwear, apparel, equipment and accessories for sports and fitness activities. Its branded product offerings include running, basketball (the Jordan brand), soccer, training and sportswear. It has a market cap of $235.15 billion.

On December 13, 2021, NKE announced the acquisition of RTFKT. This brand has taken advantage of the latest game engines, NFTs, blockchain authentication and augmented reality to create one-of-a-kind virtual products and experiences. NKE President and CEO John Donahoe said, “This acquisition is another step that accelerates Nike’s digital transformation and enables us to serve athletes and creators at the intersection of sport, creativity , games and culture.

NKE’s revenue increased 1% year-on-year to $11.40 billion in the second quarter ended Nov. 30, 2021. The company’s net profit increased 6.8% year-on-year to $1.33 billion dollars. Additionally, its EPS came in at $0.83, representing a 6.4% year-over-year increase.

Analysts expect NKE’s EPS and revenue to grow 29.7% and 13.9% year-over-year, respectively, to $4.80 billion and $53.64 billion during the in fiscal 2023. It has exceeded Street’s EPS estimates in each of the past four quarters. Over the past six months, the stock price has fallen 11.8% to close the last trading session at $148.71. However, Wall Street analysts expect the stock to hit $186.95, indicating a 25.7% upside potential.

Shares of GOOGL fell $42.00 (-1.42%) in premarket trading on Thursday. Year-to-date, GOOGL has gained 2.17%, compared to a -3.71% rise in the benchmark S&P 500 over the same period.

About the Author: Dipanjan Banchur

Ever since he was in elementary school, Dipanjan had been interested in the stock market. This enabled him to obtain a master’s degree in finance and accounting. Currently, as an investment analyst and financial journalist, Dipanjan is particularly interested in reading and analyzing emerging trends in financial markets.


The post office 3 mega-cap stocks Wall Street loves: Nike, Alphabet and Meta appeared first on StockNews.com


Comments are closed.