Attractive Large-Cap Stocks for Long-Term Growth

Strategic Insights -

Richard Moroney, editor of the Dow Theory Forecasts newsletter, has highlighted several attractive large-cap stocks that investors may consider for long-term growth. These companies, including Exxon Mobil, L-3 Communications, Home Depot, Intel, and Johnson & Johnson, have demonstrated strong financial performance and growth potential. While other oil companies have invested aggressively in new production opportunities, Exxon Mobil has chosen to prioritize profitability over growth, leading to an impressive 42% increase in operating cash flow in 2005. L-3 Communications, on the other hand, has expanded through acquisitions, targeting 8% to 10% annual revenue growth excluding acquisitions. Home Depot offers exceptional service and a wide range of products for DIYers and professionals, while Intel's chips and systems building blocks are integral to the computing and communications industries. Johnson & Johnson's broad range of products in the healthcare field has made it a leading player in the sector.

Key Takeaways:

  • Exxon Mobil has prioritized profitability over growth, leading to a 42% increase in operating cash flow in 2005, despite oil prices rising 40% in the same year.
  • L-3 Communications expands primarily through acquisitions, targeting 8% to 10% annual revenue growth excluding acquisitions.
  • Home Depot offers exceptional service and a wide range of products for DIYers and professionals, setting it apart from warehouse-style retailers.
  • Intel's chips and systems building blocks are essential to the computing and communications industries, providing a strong foundation for growth.
  • Johnson & Johnson's broad range of products in the healthcare field makes it a leading player in the sector, with a strong track record of growth and profitability.

Statistics:

  • Exxon Mobil's operating cash flow jumped 42% to over $50 billion in the 12 months ended September 2005.
  • L-3 Communications targets 8% to 10% annual revenue growth excluding acquisitions.
  • Home Depot operates over 1,900 stores worldwide, catering to both DIYers and professionals.
  • Intel supplies over 90% of the world's microprocessors, making it a dominant player in the semiconductor chip market.
  • Johnson & Johnson's sales reached over $50 billion in 2005, with a strong presence in over 120 countries worldwide.

Sources:

  • Dow Theory Forecasts newsletter
  • Zacks.com (http://at.zacks.com/?id=84)
  • Zacks Investment Research
  • Zacks.com Featured Experts
  • "Profit from the Pros" free investment newsletter
  • Zacks.com (http://at.zacks.com/?id=85)
  • Zacks Investment Research (http://at.zacks.com/?id=86)