Wall Street has seen a bull run in 2023 after a highly disappointing 2022. Year to date, all three major stock indexes are in positive territory. In fact, the S&P 500 and the Nasdaq Composite have witnessed an impressive rally.

However, in the past one and a half months, volatility has returned to U.S. stock markets. The Dow, the S&P 500 and the Nasdaq Composite exhibited negative returns during this period. At present, market participants are clueless regarding the near-term movement of U.S. stock markets.

The Fed’s September FOMC meeting to be held this week is of utmost importance. CME FedWatch is currently showing a 98% probability that the central bank will keep the fed fund rate unchanged in the range of 5.25-5.5%. However, the post-FOMC statement of Fed Chair Jerome Powell will be scrutinized word-by-word to find out the future course of the Fed’s monetary policies.

Meanwhile, a handful of U.S. corporate giants popped in the past three months defying volatility. Investment in these stocks with a favorable Zacks Rank should be fruitful for investors.

Our Top Picks

We have narrowed our search to five U.S. corporate behemoths (market capital > $50 billion) with strong potential left for the rest of this year. These stocks have seen positive earnings estimate revisions in the past 60 days.

Moreover, these companies are regular dividend payers, thus generating an income stream during a market’s downturn. Finally, each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy).

Caterpillar Inc. CAT has seen year-over-year revenue and earnings growth for nine straight quarters thanks to its cost-saving actions, strong end-market demand and pricing actions that offset the impact of supply-chain snarls and cost pressures. We expect the company’s adjusted earnings per share for 2023 to grow 19.5% and revenues to rise 7.6%.

Zacks Rank #1 Caterpillar has an expected revenue and earnings growth rate of 11.9% and 43.2%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 30 days. CAT has a current dividend yield of 1.86%.

General Electric Co. GE has been benefitting from the strong performance of the Aerospace unit, driven by commercial aerospace strength, significant growth in LEAP engine deliveries and higher defense engine orders.

With strength in GE Gas Power services and growth in Grid business and Onshore Wind in North America, there are signs of improvement in GE Vernova (the combined operations of GE Power and Renewable). Due to these tailwinds, GE raised its 2023 guidance.

Zacks Rank #1 General Electric has an expected revenue and earnings growth rate of 8.6% and 86.9%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 0.9% over the past 30 days. GE has a current dividend yield of 0.28%.

Dell Technologies Inc. DELL designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. DELL operates through two segments, Infrastructure Solutions Group and Client Solutions Group.

Zacks Rank #1 Dell Technologies has an expected revenue and earnings growth rate of 4.8% and 8.4%, respectively, for the next year. The Zacks Consensus Estimate for next-year earnings has improved 11.6% over the past 30 days. DELL has a current dividend yield of 2.14%.

Automatic Data Processing Inc. ADP continues to enjoy a dominant position in the human capital management market through strategic buyouts like Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company.

ADP has a strong business model, high recurring revenues, good margins, robust client retention and low capital expenditure. Further, ADP continues to innovate, improve operations, and invest in its ongoing transformation efforts.

Zacks Rank #2 Automatic Data Processing has an expected revenue and earnings growth rate of 6.3% and 11.1%, respectively, for the current year (ending June 2024). The Zacks Consensus Estimate for current-year earnings has improved 11.1% over the past 60 days. ADP has a current dividend yield of 2.04%.

Apollo Global Management Inc. APO is a private equity firm specializing in investments in credit, private equity and real estate markets. APO provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors.

APO’s private equity investments include traditional buyouts, recapitalization, distressed buyouts and debt investments in real estate, corporate partner buyouts, distressed asset, corporate carve-outs, middle market, growth capital, turnaround, bridge, corporate restructuring, special situation, acquisition, and industry consolidation transactions.

Zacks Rank #2 Apollo Global Management has an expected revenue and earnings growth rate of 22.5% and 28.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 60.5% over the past 60 days. APO has a current dividend yield of 1.87%.
General Electric Company (GE): Free Stock Analysis Report

Caterpillar Inc. (CAT): Free Stock Analysis Report

Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report

Dell Technologies Inc. (DELL): Free Stock Analysis Report

Apollo Global Management Inc. (APO): Free Stock Analysis Report

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