Large-cap stocks, with market capitalizations of more than $10 billion, offer investors the potential for robust growth while also providing stability.
Using Stock Target Advisors‘ Stock Comparison Tool, we will compare Energy Transfer (ET:NYE), Li Auto (LI:NSD), and Coca-Cola (KO:NYE) to determine which large-cap stock is the most compelling investment opportunity.
Energy Transfer Equity (ET:NYE):
Energy Transfer (ET:NYE) is a well-diversified midstream energy company with a strong presence in 41 U.S. states. The company moves 30% of the nation’s natural gas and crude oil through its pipelines.
In the first nine months of 2022, Energy Transfer saw impressive performance due to increased volumes across all its core segments and the recent acquisition of Enable Midstream.
The company’s Q3 2022 adjusted distributable cash flow grew 21% to $1.58 billion. Energy Transfer also has a strong financial position, which allows it to invest in high-return growth projects and enhance shareholder returns.
Energy Transfer stock has a strong buy consensus rating based on five unanimous buys and an average price target of $17.20, which implies a 36.3% upside potential.
Li Auto Inc. (LI:NSD):
Li Auto (LI:NSD) is a Chinese EV maker that saw solid deliveries in December 2022, with a 51% year-over-year increase and a 41% month-over-month increase to 21,233 units.
The company’s overall deliveries jumped 47% to 133,246 vehicles in 2022. Li Auto’s revenue in 2023 is expected to be boosted by the launch of its Li L7 5-seater SUV on February 8.
The company also expects its profitability to improve through cost management and greater economies of scale as production increases. Li Auto has a strong buy consensus rating based on seven buys and one hold rating, with an average price target of $27.78, suggesting a 27.1% upside potential.
Coca-Cola Co. (KO:NYE):
Coca-Cola (KO:NYE) raised its 2022 outlook following upbeat Q3 results, guiding for organic revenue growth of 14% to 15% and adjusted EPS growth of 6% to 7% for the full-year 2022.
The company continues to enhance its offerings with new beverages to meet the demand for healthier options. Despite the ongoing macro uncertainty, Coca-Cola’s recession-resilient business has helped it maintain stability and growth.
The company has a strong buy consensus rating based on four unanimous buys and an average price target of $70.33, which implies a 16.3% upside potential.
In conclusion, all three stocks mentioned here are Strong Buy recommendations, but Energy Transfer has the highest upside potential according to the average price target, followed by Li Auto and Coca-Cola. It’s worth noting that as always, investors should conduct their own research and due diligence before making any investment decisions.