3 Large-Cap Stocks Rated “Solid Buy” to Grab in May

Uncertainties surrounding the continuing war between Ukraine and Russia, high inflation for several decades and supply chain disruptions since the start of the year have led to bearish investor sentiment, leading to massive sales. Additionally, the past month has been extremely brutal for major equity indices, with the S&P 500 and the Dow Jones down 8.8% and 4.9%, respectively, posting the worst April since 1970.

Moreover, the Federal Reserve monetary policy meeting in May raising interest rates should trigger more volatility in the markets. As the market is likely to remain under pressure in the short term, investing in large-cap stocks could help dodge short-term swings. Their broader market reach and pricing power help them generate stable returns no matter how the market moves.

That’s why today we’re highlighting 3 exciting actions from our Top 10 Large-Cap Display, which is just one of 10 displays in our POWR Screens Service 10 (more on this below). We think it might make sense to invest in fundamentally sound large cap stocks Kroger Co. (KR), America Movil, SAB de CV (AMX) and Abbott Laboratories (ABT). They are also rated Strong Buy in our own POWR Rankings system.

Kroger Co. (KR)

With a market capitalization of $39.03 billion, KR operates as a retailer in the United States. The Company operates grocery stores and pharmacies that offer natural and organic food sections, pharmacies, general merchandise, pet centers, fresh seafood and organic products, multi-store departments that provide apparel, fashion and furniture for home, outdoor living, electronics, automotive. products and toys, market stores and price impact warehouses.

Last month, KR and Bed Bath & Beyond Inc. (BBBY), a renowned omnichannel retailer of home, baby and wellness products, announced the launch of the company’s e-commerce experience. This KR market-enabled e-commerce business has grown several thousand items from Bed Bath & Beyond and buybuy BABY. The curated digital experience is separated into easily shoppable categories to help customers quickly find exactly what they need.

KR sales increased 7.5% year-over-year to $33.05 billion in the fourth quarter ended Jan. 29, 2022. Operating profit was $965 million dollars, compared to an operating loss of $158 million in the prior year quarter. The company’s net income was $566 million versus a net loss of $77 million, while its EPS was $0.75 versus a loss per share of $0.10 at the end of the year. previous period.

The consensus EPS estimate of $1.25 represents a 5.1% year-over-year improvement in the first quarter ending April 2022. Analysts expect KR’s revenue to increased 2.9% year-on-year to $42.49 billion in the first quarter ending April 2022. Additionally, the company has an impressive earnings track record as it exceeded the consensus EPS estimate at over the past four quarters.

Shares of the company have jumped 19.2% year-to-date and 34.8% over the past six months.

KR’s POWR ratings reflect this promising outlook. The company has an overall rating of A, which translates to Strong Buy in our proprietary rating system. POWR ratings rate stocks on 118 different factors, each with its own weighting.

The stock also has an A rating for growth and a B for value and quality. In category A Grocery stores / big box retailers industry, it is ranked #5 out of 39 stocks.

To see additional POWR ratings for Sentiment, Stability, and Momentum for KR, Click here.

America Movil, SAB de CV (AMX)

Based in Mexico City, Mexico, AMX provides telecommunications services in Latin America and internationally. The company offers fixed and wireless voice services, including airtime services, local, national and international long distance services, as well as network interconnection services. It has a market cap of $62.33 billion.

During the first quarter ended March 2022, AMX’s total revenue increased 2.4% year-on-year to 211.23 billion pesos. ($10.34 billion). Its EBIT rose 6.1% year-on-year to 39.84 billion pesos ($1.95 billion), while its net profit was 30.80 billion pesos ($1.51 billion). Cash and cash equivalents were 176.43 billion Mexican pesos ($8.63 billion) for the three months ended March 2022.

Analysts expect AMX’s revenue to grow 4.1% year-over-year to $44.62 billion for the year ending December 2023. The consensus estimate for the EPS of $0.40 for the second quarter ending September 2022 represents a 67.5% year-over-year improvement. Additionally, the company has an impressive earnings track record, as it has exceeded the consensus EPS estimate for the past four quarters.

The stock has gained 35.87% over the past year and 15.6% over the past nine months.

It’s no surprise that AMX has an overall A rating, which equals Strong Buy in our POWR rating system. AMX has a B rating for stability, growth and value. Among the 47 A-rated stocks Telecom – Abroad the industry, it is ranked #1.

Click here to see additional POWR ratings for AMX (Momentum, Quality and Sentiment).

Abbott Laboratories (ABT)

Together with its subsidiaries, ABT discovers, develops, manufactures and sells healthcare products worldwide. Established Pharmaceuticals, Diagnostics, Nutritionals and Medical Devices are the four operating segments. It has a market cap of $200.16 billion.

Last month, ABT announced the launch of an enhanced version of its NeuroSphere myPath digital health app with enhanced functionality that will help doctors follow their patients more closely as they test Abbott neurostimulation devices to treat their Chronic Pain. This upgrade is part of ABT’s commitment to connected care technology and aims to put people in control of their health and enable better communication with their doctors.

During the first quarter ended March 31, 2022, ABT’s net sales increased 13.8% year-over-year to $11.90 million. the Operating profit rose 38.1% from its value a year ago to $2.91 billion, while net profit improved 36.5% from its year-ago quarter to $2.45 billion. The company’s EPS rose 37% year over year to $1.37.

The consensus EPS estimate of $4.95 for the year ending December 2023 represents a 2.1% year-over-year improvement. Additionally, the company has an impressive earnings track record as it has exceeded the consensus EPS estimate for the past four quarters. The stock is down 5.6% over the past month.

ABT’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. The stock also has an A rating for sentiment and a B rating for stability and quality. In the Medical – Devices and Equipment industry, it is ranked #2 out of 156 stocks.

In total, we rate ABT on eight different levels. Beyond what we have stated above, we have also assigned ABT ratings for Growth, Value and Momentum. Get all ABT ratings here.

Want more actions like these?

These three stocks are just a fraction of what you’ll find in our coveted Top 10 Large-Cap Strategy. And the large-cap value strategy is only a fraction of what you get with our popular service; POWR 10 screens.

POWR Screens offers 10 market strategies with exactly 10 stocks each. Truly something for every investor with verified performance.

Learn more about POWR 10 screens >>


KR shares were trading at $53.89 per share on Monday afternoon, down $0.07 (-0.13%). Year-to-date, KR has gained 19.61%, compared to a -12.99% rise in the benchmark S&P 500 over the same period.

About the Author: Spandan Khandelwal

Spandan’s is a financial journalist and investment analyst specializing in the stock market. Through its ability to interpret financial data, it aims to help investors assess a company’s fundamentals before investing. After…

More resources for actions in this article

Comments are closed.