5 Best Big Company Stocks to Buy

In this article, we discuss the 5 best big company stocks to buy. To read the latest news and analysts’ sentiments around current economic conditions, go directly to the 13 Best Big Company Stocks to Buy.

5. Mastercard Incorporated (NYSE:MA)

Mastercard Incorporated (NYSE:MA) is one of the largest payment technology companies in the world and offers various payment processing services all over the globe.

On February 6, Mastercard Incorporated (NYSE:MA) declared a quarterly dividend of $0.66, which is payable by May 9 to the shareholders of record on April 9. The stock’s dividend yield was 0.58% at the time of writing on February 9.

On January 31, Mastercard Incorporated (NYSE:MA) reported its Q4 earnings result with a non-GAAP EPS of $3.18, topping the analysts’ estimates by $0.10. The revenue of $6.5 billion increased by 13% year-over-year (YoY), which beat the estimates by $20 million.

Ensemble Capital Management commented on Mastercard Incorporated (NYSE:MA) in its fourth quarter 2023 investor letter. Here is what it said:

“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.

Muse seeks to replicate the instore experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.

Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”

4. Alphabet Inc. (NASDAQ:GOOGL)

Alphabet Inc. (NASDAQ:GOOGL) is a California-based tech holding company that has investments in artificial intelligence (AI), infrastructure, data, analytics, and more.

On February 1, Alphabet Inc. (NASDAQ:GOOGL) reported that Google inked its biggest offshore wind project in the Netherlands. The company will add more than 700 megawatts of clean energy capacity to the grids of Europe.

On January 31, BMO Capital analyst Brian Pitz raised the price target on Alphabet Inc. (NASDAQ:GOOGL)’s stock to $178 from $170 and kept an Outperform rating. In the research note, the analyst dubbed the company as the best-positioned one among its AI competitors.

First Pacific Advisors stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its fourth quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”

3. Meta Platforms, Inc. (NASDAQ:META)

Meta Platforms, Inc. (NASDAQ:META) provides social networking services, advertising solutions, and more through various platforms, including Facebook, Instagram, Threads, and WhatsApp.

On February 1, Meta Platforms, Inc. (NASDAQ:META) declared its first-ever quarterly dividend of $0.50, payable by March 26 to the shareholders of record on February 22. At the time of writing on February 9, the stock’s dividend yield was 0.426%.

In the fourth quarter, Meta Platforms, Inc. (NASDAQ:META) announced a GAAP EPS of $5.33, surpassing the estimates by $0.39. The revenue grew by 24.7% YoY to $40.11 billion and beat the estimates by $940 million.

Meta Platforms, Inc. (NASDAQ:META) was mentioned in First Pacific Advisors’ fourth quarter 2023 investor letter. Here is what it said:

“Meta Platforms, Inc. (NASDAQ:META) saw a welcome recovery in engagement and revenue year-to-date following a tough 2022. The company has continued to offer new solutions that allow advertisers to target customers effectively and efficiently via one of the world’s leading digital platforms. Moreover, operating profits are rising due to an organization-wide focus on improving productivity and accelerating the time to market for new products. However, overall profitability continues to be weighed down by losses in the Reality Labs segment. But, there is positive optionality that Meta will emerge from the AI arms race as one of the leading players in the industry.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Amazon.com, Inc. (NASDAQ:AMZN) is a Washington-based company that is engaged in providing services related to e-commerce, online advertising, digital streaming, and more.

On February 5, Amazon.com, Inc. (NASDAQ:AMZN) revealed a partnership with Reach under which the company will gain access to contextual first-party data to bypass the media industry’s move to remove third-party cookies.

40 Wall Street analysts covered Amazon.com, Inc. (NASDAQ:AMZN) in the last three months, and all maintained a Buy rating on the shares. The average price target of $207.72 had an upside of 19.88% at the time of writing on February 9.

Polen Capital stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“For the full year, the top relative and absolute contributors were Amazon.com, Inc. (NASDAQ:AMZN), Salesforce, and ServiceNow. Amazon shares appreciated 88% in 2023, driven primarily by rapidly expanding operating profit margins and free cash flow growth. After the pandemic, Amazon experienced a period of inefficiency and overinvestment in its distribution and logistics infrastructure. Amazon is now leveraging these investments as growth returned to its e-commerce business in 2023 after a highly unusual 2022. At the same time, Amazon’s rapidly growing and high-margin advertising business is contributing strongly to the entire company’s operating profit growth. The AWS (Amazon Web Services) cloud infrastructure and services business continued to slow in 2023 as customers anticipating a more difficult economic environment looked to save money on their cloud spend, but these cloud spending optimizations began to stabilize in the second half of 2023. We now expect customer interest in generative AI will begin to contribute to growth.”

1. Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) is one of the biggest and best-known tech companies in the world and develops computer software, operating systems, cloud computing, and more. It takes the top spot on our list of the best big company stocks to buy.

In the third quarter, hedge fund sentiment was positive toward Microsoft Corporation (NASDAQ:MSFT), as 306 hedge funds had investments in the stock, compared to 300 in the previous quarter. With 39.286 million shares worth $12.4 billion, Michael Larson’s Bill & Melinda Gates Foundation Trust was the top investor in the company.

On January 30, Microsoft Corporation (NASDAQ:MSFT) announced its Q2 earnings result with a GAAP EPS of $2.93, topping the estimates by $0.16. The revenue of $62.02 billion jumped 17.7% YoY, surpassing the estimates by $890 million.

Madison Investments stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation’s (NASDAQ:MSFT) sustainable scorecard was updated with an unchanged rating of Above Average. The company’s board has an official Environmental, Social, and Public Policy Committee in addition to the traditional Audit, Compensation, and Governance committees. For ten years, Microsoft has publicly released data measuring the diversity of its workforce. With the prominence of Artificial Intelligence (AI), the company has launched a 5-point blueprint for governing AI to address public policy and regulation. Environmentally, Microsoft has multiple programs to be carbon negative by 2030. The company has signed Purchase Power Agreements for carbon-free energy totaling 13.5 Gigawatts.”

You can also look at the 15 Best Cities for Hedge Fund Managers and the 10 Best Discount Retailer Stocks to Buy.

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