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It is always vital to invest money in highly profitable mega stocks, as they provide a safe environment to let you enjoy profit taking. They are quite popular, so their stocks usually tend to go up. Moreover, most of them offer acceptable dividend yields with higher-than average profit margins. The six companies in the list I made are the safest and most profitable ones among all. I suggest long-term investors to invest in at least of the following mega-caps for the long run. Here, are the top six Mega-cap gladiators with excellent indicators that also have low P/E ratios. Analysts estimate a minimum 5% EPS growth for all of the following companies (Data obtained from Finviz/Morningstar and is current as of July 25):

Apple (AAPL): Apple might make an offer for the Hulu online video service in the following days. The tech titan has a huge market cap of $373.3 billion, a P/E ratio of 15.8, and a forward P/E ratio of 12.60, as of July 25. Estimated annualized EPS growth for the next 5 years is 20.44%, which is quite conservative given the 57.78% EPS growth of the past 5 years. Its Profit margin in 2010 was 23.53%. The California-based company has no dividend policy.

$1000 invested in Apple one year ago would be worth about $1536 now. Apple has been increasing admirably since mid-June. Since then, the stock jumped from $320 to $398.5. Over the past 5 years, the company has had no debt. ROE is 41.99%, while ROA is 27.53%. Earnings increased by 122.15% this quarter, and 66.91% this year. SMA50 is 14.99%, and SMA200 is 17.65%. Target price is $487.73, which implies about a 24% upside movement potential. Operating margin is 30.43%. Seven out of eleven analysts covering the company recommend buying. I believe this upward trend will continue until the end of Q3. Significant profits can be made until then. My fair-value estimate for Apple is $430.

Chevron Corp. (CVX): Chevron will announce its Q2 results this coming Friday. As of the July 25 close, the oil company has a market cap of $215.6 billion. While forward P/E ratio is 8.20, P/E ratio is 10.50. Analysts expect the company to have 5.47% annual EPS growth in the next five years, which is reasonable when its 7.69% EPS growth of last 5 years is considered. With a 2.89% dividend bonus, Chevron has a profit margin of 9.58%.

Debt-to assets ratio has been nearly stable for the last four years, whereas the stock returned 46% in the past year. It had an 80.93% EPS growth this year, and 36.15% this quarter. SMA20 is 4.66%, while SMA50 is 6.41%. Target price indicates a 7.1% increase potential. Yields are perfect and O-Metrix score is 4.47. I think Chevron is a dividend pick for the next 5 years. However, wait for a pullback before buying. Recent dividend payments of Chevron per share are:

May 17, 2011

$0.78

Feb 14, 2011

$0.72

Nov 16, 2010

$0.72

Aug 17, 2010

$0.72

General Electric Co. (GE): General Electric had a 21% rise in its Q2 profits. As of July 25, General Electric has a market cap of $200.2 billion. It has an impressive trailing P/E ratio of 14.76, and a forward P/E ratio of 11.3. Estimated annual EPS growth for the next five years is 13.83%, while it offers a dividend yield of 3.16%. Profit margin was 8.4% last year, well above the industry average of 5.9%.

SMA50 is 1.06%, whereas SMA200 is 2.66%. The stock is trading 11.10% lower than its 52-week high. Target price is $24.00, which indicates a 26% upside movement potential. O-Metrix score is 6.51. Debts have been decreasing for the last two years. Insiders have been mostly exercising options for a while. Although General Electric is not what it used to be, it still has the potential to beat the market. If the analyst estimates of 13.83% EPS growth holds, General Electric can be a highly profitable for the long-term. Recent dividend history of the stock per share is as follows:

Jun 16, 2011

$0.15

Feb 24, 2011

$0.14

Dec 22, 2010

$0.14

Sep 16, 2010

$0.12

International Business Machines (IBM): IBM is planning to appoint Kevin Reardon as head of M&A. With a market cap of $220.7 billion, the world’s biggest computer-services provider shows a trailing P/E ratio of 14.92, and a forward P/E ratio of 12.43, as of the July 25 close. Analysts estimate a 10.83% annualized EPS growth for the next five years. Profit margin is 14.70%, while dividend yield is 1.63%.

O-Metrix score is 4.55, and insider transactions for the last six months have increased by 32.92%. While SMA200 is 16.63%, SMA50 is 7.91%. ROE is 67.53%. The stock is trading only 1.04% lower than its 52-week high, whereas target price implies a 5.3% upside movement potential. One thousand dollars invested in IBM one year ago is worth approximately $1430 for the time being. Yields are okay. Debt-to assets ratio has been hovering around 25% for the last five quarters. IBM is a reliable profit-maker. It might be slightly over-priced for now. It is better to buy on a pullback. Following are the recent dividend payments per share of IBM:

May 6, 2011

$0.75

Feb 8, 2011

$0.65

Nov 8, 2010

$0.65

Aug 6, 2010

$0.65

Microsoft Corp. (MSFT): SUSE and Microsoft just renewed their interoperability agreement. The Redmond, WA-based Microsoft, as of July 25, has a market capitalization of $238.6 billion, a P/E ratio of 11.1, and a forward P/E ratio of 10.0. Analysts expect the company to have an annual EPS growth of 10.43% for the next 5 years. Microsoft pays a 2.29% dividend, while its profit margin (31.8%) is higher than the industry average (27.1%).

The company had an EPS growth of 28.20% this year, and 34.59% this quarter. Target price is $32.96, indicating approximately 18% increase potential. SMA20 and SMA50 ratios are 5.75% and 10.87%, respectively. Operating margin is 39.2%, whereas gross margin is 78.1%. ROA is 23.61%, and ROE is 43.96%. O-Metrix score is 6.02. It is currently trading 4.07% lower than its 52-week high. Debts, assets and yields seem all right. Analysts give a 2.00 recommendation for the company (1=Buy, 5=Sell). I have big expectations for Microsoft. My fair value estimate is $46 per share. Following is the recent dividend history of Microsoft:

May 17, 2011

$0.16

Feb 15, 2011

$0.16

Nov 16, 2010

$0.16

Aug 17, 2010

$0.13

Exxon Mobil Corp. (XOM): Exxon has just placed orders for the construction of two new oil tankers. As of July 25, Exxon Mobil has a market cap of $413.40 billion. While forward P/E ratio is 8.5, trailing P/E ratio is 12.01. Estimated annual EPS growth for the next five years is 8.48%. With a profit margin of 8.78%, Exxon offers a 2.22% dividend.

The stock is trading 3.61% lower than its 52-week high. Target price is $94.15, which implies an 11.3% upside potential. SMA50 is 4.16%, while SMA200 is 8.72%. It returned 40% in twelve months. Debt-to assets ratio is nearly stable for the last five years. Yields are consistent, while the company has an O-Metrix score of 5.21. Earnings increased by 61.06% this quarter, and 56.41% this year. While the stock is cheap, investing in oil companies has its own kind of risk. Insiders have been both exercising options and selling stocks for a while. This is a strong warning from insiders. A pullback might be on Exxon’s horizon. Recent dividend history is as follows:

May 11, 2011

$0.47

Feb 8, 2011

$0.44

Nov 9, 2010

$0.44

Aug 11, 2010

$0.44

Source: 6 Mega Cap Gladiators for the Ultimate Retirement Portfolio