Large-cap stocks are known for offering stability and often lead their industries with strong competitive advantages. In May 2024, three undervalued large-cap stocks stand out as attractive investment opportunities due to their promising growth potential and reasonable valuations.
First up is Meta Platforms (NASDAQ: META), which trades at a P/E ratio of 27 following a recent post-earnings drop. Despite this, the social media giant reported impressive revenue growth of 27% in Q1 2024, with net income more than doubling year-over-year to over $12 billion. The company’s resilience in economic challenges and consistent outperformance of the stock market make it a compelling buy for long-term investors.
Next on the list is American Express (NYSE: AXP), trading at a discount compared to other credit and debit card issuers with a P/E ratio of 19. The company’s strong financial performance, including an 11% revenue increase and a 34% year-over-year growth in net income in Q1 2024, positions it well for continued success. With a focus on attracting younger consumers and a solid track record of stock price growth, American Express presents a solid investment opportunity.
Lastly, Microsoft (NASDAQ: MSFT) stands out with a P/E ratio of 36 and consistent outperformance of the stock market. The tech giant’s diverse portfolio, including cloud computing, artificial intelligence, gaming, and business software, has fueled its revenue growth and profit margins. Analysts are optimistic about Microsoft’s future prospects, with an average price target suggesting an 18% gain potential.
Overall, these undervalued large-cap stocks offer investors the opportunity to capitalize on their growth potential and attractive valuations. DailyBubble sees them as strong investment choices for those looking to build a diversified and resilient portfolio.