Core Viewpoint - Large-cap stocks, typically defined as those with a market capitalization above $10 billion, are generally expected to have lower growth prospects compared to smaller stocks. However, several large-cap stocks are projected to grow by 50% over the next 12 to 18 months, presenting potential investment opportunities [1]. Group 1: Illumina (ILMN) - Illumina specializes in genomic analysis consumables for research and diagnostics, with analysts at Canaccord maintaining a price target of $130, up from a current trading price of $107, indicating significant upside potential [2][3]. - The company exceeded earnings expectations in its most recent report and is improving its position by divesting from GRAIL, which faced regulatory scrutiny [2]. Group 2: Sirius XM Holdings (SIRI) - Sirius XM is considered undervalued, with Berkshire Hathaway acquiring over 21% of its shares, which may enhance investor confidence [4]. - The company has a strong free cash flow exceeding $1 billion, supporting a dividend yield of 3.8% and a low payout ratio of 0.29, allowing for future dividend increases [5]. Group 3: VinFast Auto (VFS) - VinFast is currently facing significant challenges, including a probe related to a fatal crash and a landlord dispute, making it a risky investment [6]. - Despite these issues, the company is experiencing sales growth, albeit at a slower rate than expected [6]. Group 4: BeiGene (BGNE) - BeiGene has recently entered the top 15 oncology firms by sales, with total revenues of $752 million in the first quarter, reflecting an 82% year-over-year increase [7][8]. - The company's BRUKINSA drug contributed $489 million to revenues and has received multiple FDA approvals, although BeiGene is not yet profitable [8]. Group 5: Warner Brothers Discovery (WBD) - Warner Brothers Discovery has shown improvement in its cash position, generating $585 million in operating cash flow, a $1.3 billion year-over-year increase [9]. - The company is nearing 100 million direct-to-consumer subscribers, with a slight increase in average revenue per user [10]. Group 6: Baidu (BIDU) - Baidu's recent earnings indicate a positive trend, with a 10% sequential revenue increase and a 110% rise in net income [11][12]. - The company is positioned as a major cloud provider in China, with significant investments in artificial intelligence that could enhance future returns [12]. Group 7: Toronto-Dominion Bank (TD) - Toronto-Dominion Bank is under regulatory scrutiny regarding anti-money laundering policies but is expected to endure and reward investors with dividends [13][14]. - The bank has set aside $450 million for potential fines, and its dividend has remained stable since 1995, benefiting from a payout ratio of 0.5 [13][14].
7 Large-Cap Stocks That Can Jump 50% By 2025