When it comes to large cap stocks, finding growth opportunities might seem like finding a needle in a haystack. After all, large caps have already done quite a bit of growing to get where they are. Nonetheless, today we focused on large cap stocks that still have room to grow, at least according to their fundamentals. We honed in on only those stocks that analysts also consider good enough to buy. We think you'll like they list we came up with.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for large cap dividend stocks. We then looked for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). Next, we then screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. We did not screen out any sectors.
Do you think these large-cap stocks should be trading higher? Use our list along with your own analysis.
1) Ensco plc (NYSE:ESV)
|Industry:||Oil & Gas Drilling & Exploration|
Ensco plc has a Dividend Yield of 3.45%, a Payout Ratio of 41.47%, a Analysts' Rating of 1.90, and a 1-Year Projected Earnings Per Share Growth Rate of 30.29%. The short interest was 1.26% as of 06/11/2012. Ensco plc provides offshore contract drilling services to the oil and gas industry worldwide. It owns and operates an offshore drilling rig fleet of approximately 77 rigs, including 7 drill ships, 13 dynamically positioned semisubmersible rigs, 7 moored semisubmersible rigs, 49 jack up rigs, and 1 barge rig used to drill and complete oil and natural gas wells. The company's drilling rigs are located in Brazil, Europe and Mediterranean region, the Middle East and Africa region, and the Asia Pacific rim region.
2) International Paper Co. (NYSE:IP)
|Industry:||Paper & Paper Products|
International Paper Co. has a Dividend Yield of 3.67%, a Payout Ratio of 38.47%, a Analysts' Rating of 1.90, and a 1-Year Projected Earnings Per Share Growth Rate of 30.45%. The short interest was 2.07% as of 06/11/2012. International Paper Company operates as a paper and packaging company in North America, Europe, Latin America, Russia, Asia, and north Africa. The company's Industrial Packaging segment manufactures containerboards, including linerboard, medium, whitetop, recycled linerboard, recycled medium, and saturating kraft. Its Printing Papers segment produces printing and writing papers, such as uncoated and coated papers used in copiers, desktop and laser printers, and digital imaging; market pulp for use in the manufacture of printing, writing, and specialty papers, as well as towel and tissue products, and filtration products; and uncoated bristols. The company's Consumer Packaging segment offers coated paperboard for various packaging and commercial printing end uses, such as food, cosmetics, pharmaceuticals, computer software, tobacco products, greeting cards, paperback book covers, lottery tickets, direct mail, and point-of-purchase advertising.
3) Nucor Corporation (NYSE:NUE)
|Industry:||Steel & Iron|
Nucor Corporation has a Dividend Yield of 4.04%, a Payout Ratio of 60.94%, a Analysts' Rating of 2.20, and a 1-Year Projected Earnings Per Share Growth Rate of 61.64%. The short interest was 3.27% as of 06/11/2012. Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot and cold-rolled sheet steel; plate steel; structural steel comprising wide-flange beams, beam blanks, and sheet piling; and bar steel, such as blooms, billets, concrete reinforcing bar, merchant bar, and special bar quality products.
4) Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)
Freeport-McMoRan Copper & Gold Inc. has a Dividend Yield of 3.79%, a Payout Ratio of 38.80%, a Analysts' Rating of 1.80, and a 1-Year Projected Earnings Per Share Growth Rate of 29.85%. The short interest was 2.06% as of 06/11/2012. Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, cobalt hydroxide, silver, and other metals, such as rhenium and magnetite. It holds interests in various mines located in the Grasberg minerals district in Indonesia; Morenci minerals district in North America; South America; and Tenke Fungurume minerals district in the Democratic Republic of Congo.
5) Kinder Morgan, Inc. (NYSE:KMI)
|Industry:||Oil & Gas Pipelines|
Kinder Morgan, Inc. has a Dividend Yield of 4.07%, a Payout Ratio of 73.37%, a Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 27.78%. The short interest was 97.27% as of 06/11/2012. Kinder Morgan, Inc. owns and operates energy transportation and storage assets in the United States and Canada. The company operates in six segments: Products Pipelines-KMP, Natural Gas PipelinesKMP, CO2KMP, TerminalsKMP, Kinder Morgan CanadaKMP, and NGPL PipeCo LLC. The Products PipelinesKMP segment delivers gasoline, diesel fuel, jet fuel, and natural gas liquids to various markets through approximately 8,400 miles of refined petroleum products pipelines; and operates approximately 60 associated product terminals and petroleum pipeline transmix processing facilities.
6) Rio Tinto plc (NYSE:RIO)
|Industry:||Industrial Metals & Minerals|
Rio Tinto plc has a Dividend Yield of 3.32%, a Payout Ratio of 46.37%, a Analysts' Rating of 1.70, and a 1-Year Projected Earnings Per Share Growth Rate of 35.77%. The short interest was 0.71% as of 06/11/2012. Rio Tinto plc engages in finding, mining, and processing mineral resources. The company produces aluminum products, including bauxite, alumina, and aluminum; copper, gold, molybdenum, silver, and nickel; diamonds; minerals, such as borates, titanium dioxide feedstocks, high purity iron, metal powders, zircon, and rutile; thermal and coking coal, and uranium; and iron ore and salt. It primarily operates in Australia, North America, South America, Asia, Europe, and southern Africa.
7) Carnival Corporation (NYSE:CCL)
|Industry:||Resorts & Casinos|
Carnival Corporation has a Dividend Yield of 3.06%, a Payout Ratio of 48.27%, a Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 39.75%. The short interest was 4.48% as of 06/11/2012. Carnival Corporation operates as a cruise and vacation company worldwide. It provides cruises to various vacation destinations with a portfolio of cruise brands comprising Carnival Cruise Lines, Holland America Line, Princess Cruises, and Seabourn in North America; and AIDA Cruises, Costa Cruises, Cunard, Ibero Cruises, and P&O Cruises in Europe, Australia, and Asia. The company also owns and operates hotels, as well as offers tourism and transportation services.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.