3 Compelling Large Caps to Buy Now

Updated

The following video is part of our "Motley Fool Conversations" series in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

It's a rough market, and many believe large-cap stocks can help your portfolio weather the storm. John and David have three in their 10-Bagger Portfolio that they think are worth buying today. The first is Google. The search giant is growing fast, has a cash-rich balance sheet, is investing heavily in its future, and trades at only 15 times current free cash flow. That's an attractive multiple for a high-quality company and a much better investment than a turnaround like Yahoo!.

Apple looks even more attractive. The company sells devices that everyone wants because they have so much great content. The company turns that demand into fast growth and tons of cash flow and trades at only 11 times free cash flow! It's a great buy. Finally, Facebook doesn't look cheap coming off its IPO. However, the negative sentiment continues to push the social-media leader's stock price down. It has an incredible future and we think it's worth taking a small position. Google, Apple, and Facebook may not be 10-baggers anytime soon, but they are too attractive to pass up in today's market environment.


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At the time thisarticle was published David Meierowns shares of Apple.John Reevesowns shares of Apple and Google. The Motley Fool owns shares of Apple, Facebook, Google, and MAKO Surgical.Motley Fool newsletter services recommendApple, Google, MAKO Surgical , and Yahoo!. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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