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Wall Street has suffered severe volatility in the past two months. Sticky inflation, a series of weak economic data and the Trump administration’s imposition of reciprocal tariffs raised concerns among market participants about a near-term recession in the U.S. economy. All three major stock indexes are in negative territory year to date.
However, three U.S. corporate giants (market capital nearly $100 billion or more) with a favorable Zacks Rank have provided positive returns in the past month. Investment in these stocks should be prudent in the near future.
These stocks are: Amphenol Corp. APH, AppLovin Corp. APP and Philip Morris International Inc. PM. Each of our picks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our three picks in the past month.
Image Source: Zacks Investment Research
Amphenol Corp.
Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance.
Amphenol benefits from a diversified business model. APH’s strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expansion of spending on both current and next-generation defense technologies bodes well for APH’s top-line growth. Apart from Defense, APH’s prospects ride on strong demand for its solutions across Commercial Air, Industrial and Mobile devices.
The Andrew acquisition is expected to add roughly $0.09 to earnings in 2025. APH’s diversified business model lowers the volatility of individual end markets and geographies. Its strong cash-flow-generating ability is noteworthy.
Amphenol has an expected revenue and earnings growth rate of 30% and 38.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.9% in the last 30 days.
AppLovin Corp.
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin’s last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of APP’s AI-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. APP’s Ai-enabled Audience+ marketing platform is also boosting its reach into direct-to-consumer and e-commerce space.