The US stock market bounced from lows and is now marching towards new highs. Apple, Microsoft, and Costco – the best large cap growth stocks to buy.
Buying the dip has been the norm during the COVID-19 pandemic, and so was in 2022. Not even the news that war started in Europe did not drive investors away from the stock market.
Now that the stocks are off their lows, what are the best large cap growth stocks to buy? Here are three companies to consider: Apple, Microsoft, and Costco.
Apple
Apple needs no introduction as its brand has gained global recognition. Its innovative products changed the world, and the stock price rewarded shareholders too.
One decade ago, Apple’s stock price traded at around $20/share, and now it is at $177/share. This may not look so impressive to some investors, but it is worth pointing out that Apple is also a dividend-paying company.
Apple pays a quarterly dividend, and it has increased the annual amount for the past 9 years. The company operated with an EBIT margin of 30.90% in the past twelve months, higher than the sector median by 246.19%. This is, perhaps, the reason why investors keep buying Apple stocks despite the somehow high valuation.
Microsoft
Microsoft is another company with a long dividend-paying history. It raised its annual dividend for the past 18 years, and yet the stock price trades near all-time highs.
Microsoft operates with a gross profit margin higher than the sector median by 38.93%, and, at the current stock market price, it is valued at $2.3 trillion.
Costco
Costco’s stock price is flat YTD but gained more than 60% in the past twelve months. Besides the stock price rising, shareholders cashed in hefty dividends.
Costco pays a quarterly dividend, and it has increased the annual amount for the past 18 years. Moreover, the dividend payout ratio is 26.05%.
Out of the 99 analysts covering Costco’s stock price, no one has issued a sell rating, and 28 have a neutral recommendation. 71 analysts have a buy recommendation, and at the start of March, BMO Capital markets maintained its buy rating with a price target of $580/share.
