13 Most Profitable Large Cap Stocks to Buy
In this piece, we will take a look at the 13 most profitable large cap stocks to buy. For more profitable large cap stocks, head on over to 5 Most Profitable Large Cap Stocks to Buy.
If someone were to ask you, which is bigger, the bond market or the stock market, what would your answer be? We would wager that it would be the stock market since stocks are the most commonly covered kind of investment vehicle right now. The media loves to fawn over big ticket companies such as Apple Inc. (NASDAQ:AAPL), and the net worth of individuals such as Elon Musk of Tesla, Inc. (NASDAQ:TSLA) which is often tied up in stocks is also a cause of awe for many. However, you'd be surprised to learn that it's not the stock market that is the biggest when it comes to the total value.
Data from the World Bank reveals that as of 2020, the market capitalization of all the publicly listed companies in the world was worth $93.69 trillion. Impressive right? Well, if that blew your mind, then hold on to your hats, folks. as data from the Securities Industry and Financial Markets Association (SIFMA) - a U.S. based trade group - shows that by the end of the first quarter of last year, the bond market was worth a whopping $128 trillion. For a comparable time period, the SIFMA had estimated in 2021 that as of the first quarter of that year, the bond market was worth $119 trillion.
So if the bond market is clearly bigger, then why do stocks get the most attention? Well, this is due to the simple fact that singular entities within the stock market are often bigger than singular bonds. Data compiled by Bloomberg shows that the biggest bond sale by a corporate entity in U.S. market history was Verizon Communications Inc. (NYSE:VZ)'s massive $49 billion bond sale in 2013 to fund its $110 billion acquisition of Vodafone. In comparison, the largest company on the stock market as of February 9, 2023, is Apple, which is worth an unbelievable $2.39 trillion.
The bigger you are, the more attention you get and this is also true for the stock market. Companies like Apple or those with a market capitalization greater than $10 billion are called large cap companies according to Fidelity Investments. These firms are preferred by retail and institutional investors not only because of the fanfare surrounding them, but also due to the stability that they offer. While smaller firms might find it hard to withstand an economic downturn, companies like Apple are a fortress due to their deep market penetration, and in Apple's case, massive amounts of cash at hand.
Today's piece will look at the largest large cap companies in terms of their profit. Out of these, the top three are Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL).
Photo by Bank Phrom on Unsplash
Our Methodology
We sifted through countless firms that are traded on global public markets to pick those with the largest profits or net income. A definition of market capitalization larger than $10 billion is used for large cap, and the research focused on a sector wise approach by looking at those with the largest companies such as oil exploration and production, technology, banking, and others.
13 Most Profitable Large Cap Stocks to Buy
13. Samsung Electronics Co., Ltd. (OTCMKTS:SSNLF)
Trailing Twelve Months Net Income: $33.2 billion (1KRW = 0.00079USD)
Number of Hedge Fund Holders In Q3 2022: N/A
Samsung Electronics Co., Ltd. (OTCMKTS:SSNLF) is one of the largest business conglomerates in the world. Known in its home country South Korea as a Chaebol, the firm has its paws in nearly every business imaginable. While Samsung's consumer electronics division which produces televisions, smartphones, and other products is perhaps the best known, the company also has biotechnology, semiconductor manufacturing, heavy industry, insurance, IT services, hospitality, hospitals, financial services, and chemicals, to name a few. Therefore, it's no surprise that Samsung Electronics Co., Ltd. (OTCMKTS:SSNLF)'s trailing twelve month profit sits at $33.2 billion.
Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), Samsung Electronics Co., Ltd. (OTCMKTS:SSNLF), and Alphabet Inc. (NASDAQ:GOOGL) are some of the most profitable large cap companies in the world.
12. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Trailing Twelve Months Net Income: $33.3 billion (1NTD = 0.033USD)
Number of Hedge Fund Holders In Q3 2022: 87
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), or simply TSMC, is the world's largest contract chip manufacturer. The firm takes orders from design companies, such as Advanced Micro Devices, Inc. (NASDAQ:AMD), and then builds their products for them.
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is currently spearheading the mass production of the 3-nanometer chip manufacturing technology, the most advanced in the world. 87 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had invested in the firm.
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)'s largest investor is Warren Buffett's Berkshire Hathaway which owns 60 million shares that are worth $4.1 billion.
11. Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR)
Trailing Twelve Months Net Income: $33.3 billion
Number of Hedge Fund Holders In Q3 2022: 33
Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) is a Brazilian oil and gas company headquartered in Rio de Janeiro. The firm explores, transports, and sells petroleum products to refineries. Additionally, it also has electricity generation facilities.
After its new CEO took over under the Brazilian President Luiz Inacio Lula da Silva, Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) announced in February 2023 that it will reduce diesel prices across Brazil. Insider Monkey took a look at 920 hedge fund holdings for the third quarter of last year to discover that 33 had held a stake in the company.
Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR)'s largest investor is Rajiv Jain's GQG Partners which owns 214 million shares that are worth $2.6 billion.
10. Chevron Corporation (NYSE:CVX)
Trailing Twelve Months Net Income: $35.5 billion
Number of Hedge Fund Holders In Q3 2022: 66
Chevron Corporation (NYSE:CVX) is one of the largest oil companies in the world. The firm explores, produces, refines, markets, and sells crude oil and petroleum products. It is headquartered in San Ramon, California.
Chevron Corporation (NYSE:CVX) announced in February 2023 that it is speeding up investments in carbon capture and storage, as it announced a $26 million contribution to these projects in Australia. As part of their investments for 2022's third quarter, 66 of the 920 hedge funds polled by Insider Monkey had bought Chevron Corporation (NYSE:CVX)'s shares.
Warren Buffett's Berkshire Hathaway is Chevron Corporation (NYSE:CVX)'s largest investor. It owns 163 million shares that are worth $23 billion.
9. Agricultural Bank of China Limited (OTCMKTS:ACGBY)
Trailing Twelve Months Net Income: $36.99 billion (1RMB = 0.15USD)
Number of Hedge Fund Holders In Q3 2022: N/A
Agricultural Bank of China Limited (OTCMKTS:ACGBY) is a Chinese state owned bank. It has different businesses that serve the needs of the government, companies, and regular customers. Some of its products and service include foreign currency operations, credit, and debit cards. Additionally, Agricultural Bank of China Limited (OTCMKTS:ACGBY) is also one of the biggest banks in the world. In fact, it is both China and the world's third largest banks, with a total of $4.6 trillion in assets as of 2021 end.
8. JPMorgan Chase & Co. (NYSE:JPM)
Trailing Twelve Months Net Income: $37.6 billion
Number of Hedge Fund Holders In Q3 2022: 110
JPMorgan Chase & Co. (NYSE:JPM) is an American bank that is also the largest private bank in the world in terms of total assets. It is also one of the oldest American companies, as it was set up in 1799. The firm serves the needs of corporate, institutional, private, and governmental clients.
JPMorgan Chase & Co. (NYSE:JPM) joined the list of American companies reducing their workforce, when it was revealed in February 2023 that the firm had laid off hundreds of employees in its mortgage banking division. 110 of the 920 hedge funds surveyed by Insider Monkey had owned a stake in the company during the third quarter of last year.
JPMorgan Chase & Co. (NYSE:JPM)'s largest investor is Ken Fisher's Fisher Asset Management which owns 7.8 million shares that are worth $820 million.
7. Shell plc (NYSE:SHEL)
Trailing Twelve Months Net Income: $42 billion
Number of Hedge Fund Holders In Q3 2022: 39
Shell plc (NYSE:SHEL) is an oil supermajor that is headquartered in London, the United Kingdom. The firm is involved in all stages of the oil supply chain, from production to the pump.
Shell plc (NYSE:SHEL) is making the waves recently for a rather unique lawsuit which is suing the company's directors personally for climate change. Insider Monkey dug into 920 hedge fund holdings for 2022's September quarter and found out that 39 had invested in the firm.
Ken Fisher's Fisher Asset Management is Shell plc (NYSE:SHEL)'s largest hedge fund investor with a $1 billion stake that comes via 20 million shares.
6. China Construction Bank Corporation (OTCMKTS:CICHY)
Trailing Twelve Months Net Income: $46.6 billion (1RMB = 0.15USD)
Number of Hedge Fund Holders In Q3 2022: N/A
China Construction Bank Corporation (OTCMKTS:CICHY) is another big Chinese state owned bank. It provides services to both private, corporate, and governments. These include loans, foreign currency, deposit accounts, and more. Additionally, China Construction Bank Corporation (OTCMKTS:CICHY) was also the second largest bank in the world in 2021, with a total of $4.7 trillion in assets.
Apple Inc. (NASDAQ:AAPL), China Construction Bank Corporation (OTCMKTS:CICHY), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOGL) are some big and profitable firms.
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Disclosure: None. 13 Most Profitable Large Cap Stocks to Buy is originally published on Insider Monkey.
