Mega-cap stocks could return to the forefront.
Which mega-caps are analysts’ favorites among those that aren’t overvalued?
Markets rose strongly on Wednesday after the United States and Iran announced a ceasefire and began talks. The gained 2.85%, the rose 2.51%, and the climbed 2.80%.
It is still too early to say the conflict has ended. Iran has already raised concerns that the agreement is being broken, and futures markets suggest a slight pullback. Still, the overall direction looks more positive.
Some strategists believe it is now in Donald Trump’s interest to keep the ceasefire in place and push for a longer-term deal.
Markets can still swing sharply. The US president may shift from a tough stance to a softer tone at any time, a pattern seen several times since the conflict began, driving volatility in both directions.
Even so, when short-term noise is set aside, the broader direction looks positive. Momentum is improving, and optimism is returning to the markets.
In this context, mega-cap stocks—companies valued above $200 billion and widely recognized—could come back into focus.
This is even more relevant as several of these stocks have declined since the start of the year and now appear undervalued based on valuation models and analyst views.
We therefore wanted to take stock of mega-cap stocks on the US market using the Investing.com screener, running a search based on the following parameters:
Market capitalization over $200 billion
Upside potential of more than 30% based on the average analyst target
Upside potential of more than 10% based on Fair Value (synthesis of valuation models)
This search helped identify analysts’ preferred mega-cap stocks while filtering out those that look overvalued or are already close to their Fair Value.
We were thus able to identify 8 opportunities:
More specifically, these US mega-cap stocks offer potential upside of 33.3% to 60.3% based on analyst estimates, while fair value models suggest they are undervalued by 10.9% to 24.3%. Notably, the stock with the highest upside is also the most undervalued on a Fair Value.
Among the stocks on this list is , a leader in e-commerce, cloud computing, and AI. It stands out as one of the few mega-cap companies where valuation has become attractive again while growth remains strong across multiple segments. Firms like BMO point to faster AWS growth, driven by rising demand for AI from large enterprises, a trend that is still in its early stages. At current levels, the stock offers both solid fundamentals and a margin of safety, a rare mix among large caps.
also features on the list. The company continues to benefit from the global shift toward digital payments, supported by industry-leading margins. It trades at a price-to-earnings ratio of around 30x, with net margins above 50% and return on equity near 54%, metrics few companies of this size can match. In a volatile environment, Visa’s steady business model makes it a preferred defensive play for many investors.
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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such, it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remain with the investor.
