3 Large-Cap Stocks to Buy for the Perfect Portfolio in 2023

NYSE: V | Visa Inc. CI A News, Ratings, and Charts

V – While the easing inflation and strong labor market have been boosting consumer confidence, uncertainties remain. Moreover, the Fed’s interest rate hikes might continue longer than many think. Therefore, fundamentally sound large-cap stocks, Visa (V), Eli Lilly (LLY), and Merck & Co (MRK), could be ideal buys to navigate the economic uncertainties. Keep reading…

Consumers are feeling better about the economy this month because of easing inflation and a still-strong labor market, as evident from the preliminary consumer sentiment index surging to 66.4 from 64.9 in January, marking the best reading since January 2021.

However, according to Niall O’Sullivan, Neuberger Berman’s chief investment officer of multi-asset strategies for Europe, the Middle East, and Africa, “inflation is going to be harder to tame.” He added, “Central banks will have to be at it much longer than many people think.”

Moreover, he also believes that it could be years rather than months before inflation is properly curbed, and the Fed is unlikely to cut rates this year.

While according to Dow Jones, economists are expecting a 0.4% increase in CPI in January, translating into 6.2% annual growth, there are some indications that the figure could be higher.

Given the lingering macroeconomic uncertainties, investing in large-cap stocks could be safe because these companies are more established and usually survive market disruptions better. Hence, fundamentally sound large-cap stocks, Visa Inc. (V - Get Rating), Eli Lilly and Company (LLY - Get Rating), and Merck & Co., Inc. (MRK - Get Rating), could be perfect buys in 2023.

Visa Inc. (V - Get Rating)

V is a leading payments technology company that facilitates digital payments among consumers, merchants, financial institutions, strategic partners, businesses, and government entities. In addition, it provides card products, platforms, and value-added services.

The company offers its products and services under Visa, Visa Electron, Interlink, VPAY, and PLUS brands. V has a market capitalization of $481.10 billion.

V has paid dividends for 14 consecutive years. Over the last three years, V’s dividend payouts have grown at a 14.5% CAGR. While V’s four-year average dividend yield is 0.62%, its current dividend translates to a 0.79% yield.

V’s net revenues came in at $7.94 billion for the first quarter that ended December 31, 2022, up 12.4% year-over-year. Its operating income came in at $5.10 billion, up 6.6% year-over-year, while its non-GAAP net income increased 17.4% year-over-year to $4.58 billion. The company’s non-GAAP EPS came in at $2.18, up 20.4% year-over-year.

V’s revenue is expected to increase by 10.4% year-over-year to $32.35 billion in 2023. Its EPS is expected to grow 12.5% year-over-year to $8.44 in 2023. It surpassed EPS estimates in all four trailing quarters. Over the past nine months, the stock has gained 14.9% to close the last trading session at $228.88.

V’s POWR Ratings reflect this promising outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

V has an A grade for Sentiment and Quality and a B for Stability. Within the Consumer Financial Services industry, it is ranked #4 out of 48 stocks. Click here to access the additional POWR Ratings for V (Value, Momentum, and Growth).

Eli Lilly and Company (LLY - Get Rating)

LLY discovers, develops, and markets human pharmaceuticals worldwide. The company provides diabetes, oncology, neuroscience, and other products. LLY has a market capitalization of $332.94 billion.

On February 13, 2023, LLY will provide its active pharmaceutical ingredient (API) for human insulin at a lower price to International Agencies (Bangladesh) Ltd. (IABL) in an effort to improve patient access and affordability for high-quality insulin for almost one million diabetics in Bangladesh by 2030.

On January 28, 2023, Loxo@Lilly, LLY’s oncology unit, announced that the FDA had approved JaypircaTM (pirtobrutinib, 100 mg & 50 mg tablets) for the treatment of adult patients with relapsed or refractory mantle cell lymphoma (MCL) after at least two lines of systemic therapy, including a Bruton’s tyrosine kinase (BTK) inhibitor. This approval should be beneficial for the company.

LLY has paid dividends for 33 consecutive years. Over the last three years, LLY’s dividend payouts have grown at a 15% CAGR. LLY’s four-year average dividend yield is 1.63%, and its current dividend translates to a 1.31% yield.

LLY’s trulicity revenues increased 2.8% year-over-year to $1.94 billion for the fourth quarter ended December 31, 2022. Its net income increased 12.3% year-over-year to $1.94 billion, and its EPS came in at $2.14, up 12.6% year-over-year.

Street expects LLY’s revenue to increase 7.4% year-over-year to $30.65 billion in 2023. Its EPS is expected to increase 7.4% year-over-year to $8.53. It surpassed EPS estimates in three out of the four trailing quarters. Over the past year, the stock has gained 48.6% to close the last trading session at $350.40.

It’s no surprise that LLY has an overall B rating, equating to a Buy in our POWR Ratings system. It has a B for Stability and Quality. It is ranked #37 out of 172 stocks in the Medical – Pharmaceuticals industry.

Beyond what is stated above, we’ve also rated LLY for Value, Growth, Momentum, and Sentiment. Get all LLY ratings here.

Merck & Co., Inc. (MRK - Get Rating)

MRK is a global provider of health solutions through its prescription medicines, vaccines, biological therapies, and animal health products. The company operates through two segments: Pharmaceutical and Animal Health. It offers its products to drug wholesalers, retailers, hospitals, government agencies, and other healthcare providers. MRK has a market capitalization of $277.75 billion.

On January 26, 2023, Merck Animal Health, a division of MRK, announced the approval of an additional indication for BRAVECTO® Chews for Dogs by the U.S. Food and Drug Administration. It cures and manages Asian longhorned ticks, an invasive Ixodid species found in more than one-third of the U.S., and should be in demand.

MRK has paid dividends for 12 consecutive years. Over the past three years, MRK’s dividend payouts have grown at 9.1% CAGR. While MRK’s four-year average dividend yield is 2.95%, its current dividend translates to a 2.69% yield.

MRK’s total sales came in at $13.83 billion for the fourth quarter ended December 31, 2022, up 2.3% year-over-year. Its Pharmaceutical segment revenue increased marginally year-over-year to $12.18 billion.

Street expects MRK’s revenue to increase 6% year-over-year to $61.72 billion in 2024. Its EPS is expected to increase 24.7% year-over-year to $8.58 in 2024. It surpassed EPS estimates in all four trailing quarters. Over the past year, the stock has gained 42.9% to close the last trading session at $109.55.

MRK’s overall A rating equates to a Strong Buy in our POWR Ratings system. It has a B grade for Value, Stability, and Quality. The stock is ranked #18 in the same industry.

We’ve also rated MRK for Momentum, Sentiment, and Growth. Get all MRK ratings here.

What To Do Next?

Get your hands on this special report:

3 Stocks To DOUBLE This Year

What gives these stocks the right stuff to become big winners, even in this brutal stock market?

First, because they are all low-priced companies with the most upside potential in today’s volatile markets.

But even more important is that they are all top Buy rated stocks according to our coveted POWR Ratings system, and they excel in key areas of growth, sentiment and momentum.

Click below now to see these 3 exciting stocks that could double or more in the year ahead.

3 Stocks To DOUBLE This Year

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


V shares were unchanged in premarket trading Tuesday. Year-to-date, V has gained 10.38%, versus a 7.95% rise in the benchmark S&P 500 index during the same period.


About the Author: Rashmi Kumari


Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master's degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
VGet RatingGet RatingGet Rating
LLYGet RatingGet RatingGet Rating
MRKGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More Visa Inc. CI A (V) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All V News