Large-cap stocks have long been a staple in the portfolios of seasoned investors, offering a stable track record and often substantial dividends. While not as volatile as their smaller counterparts, the potential for growth remains present for select large-cap stocks, including Target, Cardinal Health, and Arista Networks.
Arista Networks: Riding the Wave of AI
Arista Networks has surged alongside the artificial intelligence boom, providing critical network switches to major tech entities. A Zacks Rank #2 (Buy) stock, Arista Networks has seen upward earnings estimate trends across the board. Its impressive growth profile forecasts a substantial 43% earnings growth and a 33% rise in sales for the current fiscal year. The company’s momentum is expected to continue into FY24 with an additional 10% earnings boost and an 11% revenue climb.
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Target: Transforming into an Omni-Channel Powerhouse
Target has transcended traditional retail, evolving into an omni-channel force to be reckoned with. With a Zacks Rank #2 (Buy), Target’s earnings estimates have trended upwards, reflecting a projected 40% earnings growth for the current fiscal year. Additionally, the stock offers a robust dividend yield of 3.1% and has demonstrated a 15% five-year annualized dividend growth rate.
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Cardinal Health: Sustained Earnings Excellence
Cardinal Health, a prominent national drug distributor, and service provider to the healthcare industry, is another Zacks Rank #2 (Buy) stock. The company has witnessed a robust 12% increase in revisions trend for its current fiscal year, depicting a solid outlook for profitability. Forecasts indicate 20% earnings growth and a 10% rise in sales for the current year, with FY25 estimates pointing to an additional 12% earnings surge and an 8% revenue increase.
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Seeking Large-Cap Exposure
Large-cap stocks are the backbone of many investment portfolios, offering resilience and proven performance. For those eyeing large-cap opportunities, stocks like Target, Cardinal Health, and Arista Networks with their improved earnings outlooks, are worth a close watch.
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