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Following is a list of 7 Mega Cap Stocks with high EPS growth rate:

Ticker

Company

Sector

Current Year P/E

Current Year EPS Growth Rate

AAPL

Apple Inc.

Technology

13.64

81%

BHP

BHP Billiton Ltd.

Basic

Materials

9.10

40%

PTR

PetroChina Co. Ltd.

Basic

Materials

9.17

20%

XOM

Exxon Mobil

Corporation

Basic

Materials

8.37

39%

CVX

Chevron Corporation

Basic

Materials

7.09

44%

ABV

Companhia de Bebidas

Das Americas (AMBEV)

Consumers

20.14

23%

GOOG

Google Inc

Technology

14.80

20%

Among the above stocks, I like Apple Inc. the most. Apple is a secular growth and market share gain story in the smartphone and tablet space and I believe it can continue to post high EPS growth rate for the next several years.

Apple posted $15.15 in EPS last year and its EPS forecast for the current year is $27.41. According to consensus estimates, its top line is expected to grow 66% in the current year and 22.5% next year. Apple is trading at PE of 13.64x current year EPS. However, if we adjust of its cash holdings, Apple is trading at 10.5x current year EPS and 9.1x next year EPS. This looks cheap giving its high growth rate.

I believe recent correction is a good opportunity to build a position in the stock before the upcoming iPhone 5 launch. The IPhone 5 is likely to drive typical excitement during the 2011 holiday season with growth driven by upgrades and new users. This can serve as a catalyst for the stock price.

Sell side analyst are also bullish on the stock with median target price of $500. Out of 57 analysts covering the stock 53 have buy ratings, one has a sell rating and three have hold ratings.

BHP Billiton Limited is a diversified natural resources company. The Company operates nine customer sector groups (CSGs): petroleum, aluminium, base metals (including uranium), diamonds and specialty products, stainless steel materials, iron ore, manganese, metallurgical coal and energy coal. BHP Billiton Limited posted $4.46 in EPS last year and its EPS forecast for the current year is $6.25. According to consensus estimates, its top line is expected to grow 35.5% in the current year and 9.5% next year. Out of five analysts covering the company two have buy ratings and three have hold ratings.

PetroChina Company Limited is an oil and gas producer and seller in the People’s Republic of China. The Company operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. PetroChina posted $11.23 in EPS last year and its EPS forecast for the current year is $13.48. According to consensus estimates, its top line is expected to grow 19.90% in the current year and 16.40% next year. Out of four analysts covering the company one has a buy rating, two have sell ratings and one has a sell rating.

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. It also has interests in electric power generation facilities. Exxon Mobil posted $6.22 in EPS last year and its EPS forecast for the current year is $8.62. According to consensus estimates, its top line is expected to grow 23.20% in the current year and 3.60% next year. Out of 22 analysts covering the stock 11 have buy ratings, ten have hold ratings and one has a sell rating.

Chevron Corporation is engaged in petroleum operations, chemicals operations, mining operations, power generation and energy services. Upstream operations consist of exploring for, developing and producing crude oil and natural gas; transporting crude oil by international oil export pipelines; transporting, storage and marketing of natural gas, and a gas-to-liquids project. Downstream operations consist of refining of crude oil into petroleum products marketing of crude oil and refined products. Chevron Corporation posted $9.37 in EPS last year and its EPS forecast for the current year is $13.53. According to consensus estimates, its top line is expected to grow 22.90% in the current year and 19.90% next year. Out of 22 analysts covering the stock seventeen have buy ratings and five have hold ratings.

Companhia de Bebidas das Americas - AmBev (AmBev) is a Brazil-based company. AmBev and its subsidiaries produce, distribute and sell beer, carbonated soft drinks and other non-alcoholic and non-carbonated products in 14 countries across the Americas. AmBev is also PepsiCo International, Inc. (NYSE:PEP) bottler outside the United States. AmBev posted $1.39 in EPS last year and its EPS forecast for the current year is $1.71. According to consensus estimates, its top line is expected to grow 17.80% in the current year and 10.30% next year. Out of nine analysts covering the company, seven have buy ratings and two have hold ratings.

Google Inc. focuses on areas, such as search, advertising, operating systems and platforms, and enterprise. The Company maintains an index of Websites and other online content, and makes it available through its search engine to anyone with an Internet connection. The Company generates revenue primarily by delivering targeted online advertising. Google posted $29.6 in EPS last year and its EPS forecast for the current year is $35.45. According to consensus estimates, its top line is expected to grow 30.20% in the current year and 22.20% next year. Out of 39 analyst covering the company, 34 have buy ratings and five have hold ratings.

Source: 7 High Growth Mega Cap Stocks