Micron Shines as Mega-Cap Stocks Underperform
Investors looking for long-term success may want to consider one mega-cap stock and avoid two others. Micron, with a market cap of $1.06 trillion, stands out as a leading provider of memory chips used in various industries.
The company's annual revenue growth of 106% over the last two years is impressive, and its earnings per share grew by 57.1% over the past five years. This indicates that Micron has increased its market share during this cycle and has more resources to pursue growth initiatives or return value to shareholders.
On the other hand, IBM and ExxonMobil are two mega-cap stocks that may be worth selling. IBM's annual sales growth of 4.3% over the last five years lagged behind its business services peers, and demand for its products is expected to remain soft in the next 12 months.
ExxonMobil's gross margin of 43.9% is below that of its competitors, leaving less money for investment in exploration and production. Its expenses have increased as a percentage of revenue over the last five years, further reducing profitability.