The large-cap companies represent those stocks that are globally recognized, have an established business model and are well-researched companies.
HDFC Securities has initiated the coverage of two chemical sector players expecting hefty gains.
The US stock market is off to a great start in 2021. The leading stock market indices such as the S&P 500 and Nasdaq 100 are up by nearly 3.45 per cent and 5.55 per cent respectively in year-till-date. Some of the individual stocks have already generated over 300 per cent return year-till-date (YTD)! KemPharm and CPS Technologies are two such stocks that are up by nearly 3400 per cent and 700 per cent till date in 2021. But, if the companies are not large-cap companies, a higher exposure into them may not be the right approach.
For investors looking to invest in US stocks, keeping a focus on large-cap stocks is better than merely investing in the lesser-known stocks showing a sudden investing interest. The large-cap companies represent those bunch of stocks that are globally recognized, have an established business model to take the company over several decades if not years. They are well-researched companies and are liquidity-driven stocks.
Here are 5 such stocks with a market cap of above $100 billion and have generated between 17 per cent and 33 per cent in 2021 so far. The 1-year performance of most of these stocks has also been commendable. However, past performance may not be sustained in future and buying should be based on the fundamental strength of the company.
Eli Lilly Stock
Pharmaceutical – Market Capitalization – $198.94B
YTD: 19.5 per cent 1-year: 39.70 per cent
The company is into discovering medicines that meet real needs, improving the understanding and management of disease through pursuing pharmaceutical innovation, providing high-quality products and striving to deliver superior business results.
Auto Manufacturers – Market Capitalization – $752.19B
YTD: 20.77 per cent 1-year: 480 per cent
Tesla builds not only all-electric vehicles but also infinitely scalable clean energy generation and storage products, accelerating the world’s transition to sustainable energy with electric cars, solar and integrated renewable energy solutions for homes and businesses.
Semiconductor – Market Capitalization – $225.54B YTD: 17.47 per cent 1-year: -10.94 per cent
The firm is known for world-changing technology that enriches the lives of every person on earth. Intel is working relentlessly to unleash the potential of data, leading to more capable and efficient networks, and pervasive AI across smart devices.
Zoom Video Communications Stock
Internet Software – Market Capitalization – $106.41B
YTD: 24.39 per cent 1-year: 382 per cent
The company provides cloud platform for video, voice, content sharing, and chat runs across mobile devices, desktops, telephones, and room systems. Zoom is publicly traded on Nasdaq (ZM) and is headquartered in San Jose, California.
Internet Content – Market Capitalization – $109.71B
YTD: 33 per cent 1-year: Not Applicable
The company is an American vacation rental online marketplace company based in San Francisco, California. Airbnb maintains and hosts a marketplace, accessible to consumers on its website or via an app.
How to buy US stocks
Technology and pharmaceutical domination seems to be continuing in 2021. However, one should be diversified across sectors and not go overboard in exposure to any one or two sectors. Investing in these or any other US stock is simple and easy for Indian investors. You may open a brokerage account for foreign stocks. Complete the KYC formalities, transfer funds and start trading in the US stocks. And, what’s more, US brokerage accounts allow owning US stocks even in fractions. You don’t need to buy the entire share but own a fraction of the US blue-chip stocks, especially those which are highly-priced.
Disclaimer: The investing decision in these or any other stock should be taken on your own after carefully evaluating the business and other fundamentals of the company or after consulting one’s financial advisor. It is not a recommendation to buy, hold or sell in any of the stocks. Financial Express Online does not bear any responsibility for their investment advice.
Looking to invest in US Stocks? Open a free account with Stockal - India's first borderless investment platform.