3 Large Cap Stocks With Fresh Catalysts

Last week, the S&P 500 and NASDAQ both retreated, snapping a three-week streak of gains as an exceptionally strong earnings season drew to a close.

With valuations elevated in many corners of the market and plenty of uncertainty still lingering, investors have good reason to be selective. Focusing on companies with strong underlying fundamentals can help investors separate durable opportunities from short-lived momentum.  

That focus can make large-cap stocks particularly interesting. These tend to be established businesses with greater scale, deeper resources, and more financial flexibility — all of which can prove useful in unpredictable conditions. 

Of course, size alone doesn’t guarantee quality. Separating the strongest large caps from the rest still requires careful research. 

Thankfully, there’s a way to expedite that process — all you have to do is turn to … 

Large Caps Stock Strategy

Our proprietary quant system evaluates 4,600 stocks every day using 115 fundamental metrics and factors split across 7 categories called Component Grades. Those insights come together to form a single, straightforward metric — a stock’s Zen Rating.

A Zen Rating of A, equivalent to a Strong Buy recommendation, is only given to the top 5% of stocks. That does narrow the search down, but you’re still left with about 230 stocks to consider on any given day. Thankfully, you can narrow the search down even further — by taking a look at one of our exclusive Zen Strategies.

These are 11 carefully constructed stock portfolios, each consisting of just 7 tickers selected to deliver outsized returns. Today, we’ll be taking a look at a portfolio that has delivered a 28.86% return since the start of the year, more than twice the S&P 500’s 11.90% gain over the same period. This week, the spotlight is on our Large Caps Stock Strategy.

EMCOR Group (EME)

Our first pick, EMCOR Group, provides electrical and mechanical construction, industrial infrastructure, and building services. EME ranks in the top 7% of the stocks we track, giving it a Zen Rating of B, equivalent to a Buy recommendation. It is also the 6th highest-rated stock in the A-rated Engineering & Construction industry.

EMCOR ranks in the top 7% of everything we track for both Financials and our Artificial Intelligence rating. Even more impressive is Sentiment — EME lands in the top 3% in that category, indicating strong smart money interest. Wall Street is similarly bullish, with the average analyst price target implying roughly 27% upside. Growth is the one rating that lands closer to the middle of the pack — but in that regard, it’s far from bad — just not quite exceptional.

 EME has notched 17 earnings beats in a row — and despite the strong track-record when it comes to executing, the stock is down roughly 8.5% on the 3-month chart, giving investors a nice discount on a strong, proven business.

Sandisk (SNDK)

Sandisk designs and manufactures flash-memory and data-storage products, including solid-state drives and other NAND-based solutions. SNDK ranks in the top 1% of all the stocks we track, giving it a Zen Rating of A, equivalent to a Strong Buy recommendation. It is also the highest-rated stock in the Computer Hardware industry.

In terms of our Sentiment rating, SNDK is in the top 12% of the market, followed by Value in the top 8% and Momentum in the top 7%. Growth takes things a step further with a placement in the top 5%, but the star of the show are Financials — where SNDK ranks in the top 1% of everything we track.

Safety is the one softer spot here, but Sandisk’s latest results provided plenty of reasons for optimism. Revenue surged 51% sequentially in the company’s August 5 report, with Data Center revenue more than doubling. Management also authorized another $14 billion in share repurchases — a strong vote of confidence from the people running the show.

Phillips 66 (PSX)

Our final pick, Phillips 66, is a downstream energy company with operations spanning refining, pipelines, chemicals, fuel marketing, and renewable fuels. PSX ranks in the top 1% of everything we track, giving it a Zen Rating of A, equivalent to a Strong Buy recommendation. It is currently the 5th highest-rated stock in the A-rated Oil & Gas Refining & Marketing industry.

The Component Grade panel here is exceptionally strong. Value starts things off in the top 26%, followed by Financials in the top 14%. When it comes to both Safety and Sentiment, Phillips 66 is in the top 8%, and it’s also in the top 3% with regard to our Artificial Intelligence rating. Best of all are Growth and Momentum — Phillips 66 ranks in the top 1% for both categories.

Phillips 66 comfortably beat earnings estimates in its latest quarterly report on August 5 — marking the 5th consecutive quarter in which the company outperformed estimates. On top of that, the company’s board authorized an additional $10 billion in share repurchases 

Interested In More Great Stock Picks? 

The 3 stocks highlighted above are just a fraction of what you get from our proven  Large Caps Stock Strategy.

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 large caps stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Large Caps stocks here >

However, maybe large cap stocks aren’t what you’re after right now. Perhaps you would like to see all 11 of our market beating strategies including Buy the Dip, Momentum, Value, and our coveted AI Factor model. 

Each featuring the top 7 stocks.

Each featuring tremendous performance

We spell it all out in this timely presentation below that lives up to its name:

10 Minutes a Month to Beat the Market > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.