© Reuters. 5 unreasonable mega-cap stocks you can buy in December
The Federal Reserve’s decision to tighten its monetary policy, rising inflation, supply chain bottlenecks and the threat of the omicron variant of COVID-19 are expected to keep the stock market under pressure in the near future. Therefore, we think it would be wise to bet on fundamentally healthy stocks of mega-capitalization UnitedHealth (UNH), Walmart (NYSE :), Oracle (ORCL), Cisco Systems (NASDAQ 🙂 and Broadcom (). These stocks are in a good position to withstand market fluctuations and give stable returns. Let’s talk. Although solid earnings in the third quarter, declining unemployment and rising consumer spending pushed markets to new highs last month, the emergence of a highly contagious new variant of COVID-19, high inflation, geopolitical tensions, supply chain constraints and the Federal Reserve’s decision to cut purchases the bond has recently fueled worrying market volatility. Since these factors are unlikely to dissipate quickly, betting on mega-cap stocks with exceptional growth potential and strong fundamentals could be an ideal strategy to protect your investment portfolio from expected market fluctuations.
Mega-cap stocks, which have a market capitalization of $ 200 billion or more, have the potential to avoid short-term fluctuations and deliver stable returns. Also, favorable policies to encourage domestic production and ongoing efforts to address supply chain problems further increase the prospects for mega-cap stock growth.
Prominent mega-cap players UnitedHealth Group Incorporated (NYSE :), Walmart Inc. (WMT), Oracle Corporation (NYSE :), Cisco Systems, Inc. (CSCO) and Broadcom Inc. (AVGO) have the potential to take advantage of their respective industrial winds and deliver stable returns. Given their solid combination of value and quality, we think these shares can reasonably be described as “unreasonable”.
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