Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), Apple (AAPL), Tesla (TSLA), and Berkshire Hathaway (BRK.B): A common theme among all of these names is that they are members of the coveted $1 trillion market cap club. Behemoths who command significant global demand for their products and services, these companies are giants in their respective fields.
However, it is noteworthy that out of all the members of this elite club, Warren Buffett-led Berkshire Hathaway is the only company outside of the tech sector - although the billionaire's conglomerate has made considerable gains over the years from its investment in Apple, which accounts for 23.6% of the Berkshire equity portfolio.
Now that Berkshire has broken the proverbial “glass ceiling” for non-tech companies to join the ranks of trillion-dollar entities, it's worth considering which names might be next to level up. These three mega-cap names - from key sectors such as finance, retail, and pharmaceuticals - currently look like strong contenders, particularly as analysts believe that President-elect Donald Trump pro-business agenda could stimulate growth heading into 2025. Here's a closer look.
#1. JPMorgan Chase Stock
We start our list with one of the most recognizable names on Wall Street, JPMorgan Chase (JPM). Tracing its roots back to 1871, JPMorgan Chase is a leading global financial services firm providing a wide range of financial products and services to consumers, small businesses, corporations, governments, and institutions. Its primary business segments include Consumer and Community Banking, Commercial Banking, Corporate and Investment Banking, and Asset & Wealth Management.
Valued at a market cap of $703.2 billion, JPMorgan is the world's largest bank by market cap. This year, JPM stock is up an impressive 46.8% on a YTD basis. Notably, the stock also offers a dividend yield of 2%, backed by a decade of steady growth.
In its third-quarter earnings report, JPM beat consensus estimates on both revenue and earnings. While revenues of $43.3 billion rose 6.5% year over year, earnings for the quarter came in at $4.37 per share. Both interest income and non-interest income contributed to the overall growth in revenues at $23.5 billion (up 3% YoY) and $19.8 billion (up 11% YoY), respectively.
Moreover, with $273 billion in Common Equity Tier 1 (CET1) capital and an earnings capacity of $80 billion annually on a pre-tax, pre-loan loss provision basis, JPMorgan Chase is well-equipped to address potential challenges arising from a deteriorating loan book or higher-risk market positions. The bank also maintains a strong CET1 ratio of 15.3%, one of the highest among large financial institutions, providing a solid buffer against economic uncertainties.
JPMorgan's financial strength is further supported by a robust balance sheet, with total loans reaching $1.3 trillion, reflecting a 1% year-over-year (YoY) and quarter-over-quarter (QoQ) growth. Deposits remain substantial at $2.4 trillion, enabling the bank to manage its nearly $23 billion in expenses effectively.
In addition to its solid financial management, the bank is pursuing physical expansion to drive growth. Earlier this year, JPMorgan announced plans to open 500 new branches by 2027, averaging 125 new branches annually. This initiative targets underserved low-income and rural areas, aiming to attract deposits and expand its customer base. These new branches are projected to generate additional revenues of approximately $9.1 billion, enhancing the company’s long-term growth prospects.
Analysts have an average rating of “Moderate Buy” for JPM stock, with a mean target price of $238.55, which is a slight discount to Friday's close. Out of 22 analysts covering the stock, 12 have a “Strong Buy” rating, 2 have a “Moderate Buy” rating, 7 have a “Hold” rating, and 1 has a “Strong Sell” rating.
#2. Walmart Stock
Founded by the legendary Sam Walton in 1962, Walmart (WMT) operates a chain of hypermarkets, discount department stores, and grocery stores. It serves customers globally with over 10,500 stores across 20+ countries, operating under various banners such as Walmart, Sam’s Club, and Asda. Additionally, Walmart has a strong online presence, contributing significantly to its revenue through e-commerce sales. The retail giant currently commands a market cap of about $738.5 billion.
WMT stock has rallied to new highs this year, up 76% on a year-to-date basis. Moreover, the outperforming stock is a “Dividend King,” though its outperformance means that WMT now offers a relatively modest dividend yield of just 0.90%.
Walmart posted blockbuster numbers for the third quarter of fiscal 2025, with both revenue and earnings surpassing estimates. Total revenues of $169.6 billion were up 5.5% from the previous year, as a new revenue stream in the form of advertising grew 28% yearly, while a comparable sales increase of 5.3%, a rise in average ticket sizes, and traffic growth also contributed.
Earnings grew 13.7% to $0.58 per share, surpassing the consensus estimate of $0.53 per share. This marked the 10th consecutive quarterly earnings beat from WMT.
Net cash flow from operating activities for the first nine months of 2024 increased by 20.5% on a YoY basis to $22.9 billion, as the company closed the quarter with a healthy cash balance of $10 billion, dwarfing its short-term debt levels of $3.6 billion.
Walmart has been quietly laying the groundwork for its next growth phase, emphasizing digital transformation, e-commerce, advertising, and the expansion of its third-party marketplace. These efforts have enabled Walmart to become the second-largest e-commerce platform in the U.S. by market share. In the grocery segment, Walmart holds a commanding lead with nearly 27% market share, significantly outpacing Amazon’s 18.5%.
The company’s adaptability is also evident in the challenging Chinese market. Walmart’s strategy in China combines physical and digital initiatives to cater to local consumer preferences. Its physical presence emphasizes smaller-format stores that prioritize fresh food, aligning with urban space constraints and the preferences of Chinese shoppers. The membership-only Sam’s Club has seen strong performance, benefiting from the growing middle-class demand for high-quality imported goods.
On the digital front, Walmart is committed to delivering a localized omnichannel experience. The Walmart Mini program on WeChat is a prime example, enabling consumers to order from stores within a 3–5 km radius with options for 1-hour or next-day delivery. This blend of physical and digital innovation positions Walmart to meet the unique needs of Chinese consumers effectively.
WMT stock has a “Strong Buy” rating overall, with a mean target price of $95.49. This denotes an upside potential of about 4.5% from current levels. Out of 36 analysts covering the stock, 29 have a “Strong Buy” rating, 4 have a “Moderate Buy” rating, and 3 have a “Hold” rating.
#3. Eli Lilly Stock
We conclude our list of mega-caps rwith pharmaceutical giant Eli Lilly (LLY). Founded in 1876, Eli Lilly specializes in pharmaceuticals, targeting areas such as diabetes care, oncology, immunology, and neuroscience. Based out of Indianapolis, Eli Lilly has grown to become one of the largest pharmaceutical companies in the world, with a market cap of $748.2 billion.
In 2024, LLY stock has gained 36.4%, outperforming the broader market. The stock also offers a dividend yield of 0.66%, backed by a decade of consistent growth.
Lilly has delivered steady growth over the past 10 years, with revenue and earnings clocking CAGRs of 7.25% and 12.02% over this period, respectively.
However, the results for the latest quarter fell short of Wall Street's estimates. In the third quarter, the company reported revenues of $11.4 billion, up 20% year over year, while EPS jumped to $1.18 per share from $0.10 per share in the year-ago period.
Analysts were looking for higher EPS of $1.47, and Lilly also lowered its full-year guidance, citing the negative impact of inventory decreases.
Cash flows remained solid; for the first nine months of 2024, Lilly reported net cash from operating activities of $6.34 billion, up from $4.55 billion in the year-ago period. Overall, the company exited the quarter with a cash balance of $3.4 billion, higher than its short-term debt levels of $2.1 billion.
Eli Lilly appears poised for sustained growth, driven by its expanding product portfolio and strong pipeline developments. Recent studies have highlighted additional benefits of its diabetes treatment, Mounjaro, which not only aids in weight reduction but also reduces the severity of sleep apnea and improves blood pressure and other health metrics in obese patients over a year of treatment.
Mounjaro's growth trajectory is bolstered by accelerating international sales, positioning it as a cornerstone of Eli Lilly's performance. Adding to this momentum is the upcoming global launch of Zepbound in Q4 2024, which is expected to drive significant growth into FY2025, even amid tougher year-over-year comparisons.
Eli Lilly's dermatology portfolio also received a boost with the FDA approval of Ebglyss for moderate to severe atopic dermatitis. The drug’s efficacy rivals that of Dupixent, the current market leader, but offers greater convenience with a maintenance dose every four weeks compared to Dupixent’s biweekly regimen. Ebglyss has already seen successful launches in Germany and Japan, and its potential extends to conditions like allergic rhinitis and chronic rhinosinusitis, with phase 3 trial results anticipated in 2026.
Additionally, Lilly's pipeline includes promising candidates such as orforglipron for type 2 diabetes and retatrutide for weight loss, further solidifying its outlook for long-term growth.
Analysts have an overall rating of “Strong Buy” for LLY stock, with a mean price target of $1,015.18. This implies an expected upside potential of roughly 27.9% from current levels. Out of 25 analysts covering the stock, 21 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating and 3 have a “Hold” rating.
