Given the current, uncertain state of the market, it could be safest to invest in mega-cap stocks for stable returns. And Wall Street analysts expect quality mega-cap stocks Visa (V), Alibaba (NYSE:BABA), and PayPal (NASDAQ:PYPL) to deliver solid returns in the coming months. So, let’s discuss these names.Mega-cap stocks are considered the safest bets amid market volatility because the size and strength of these companies help them to endure market downturns better than their smaller-cap brethren. Due to their traditional, low-risk nature, mega-cap stocks are trusted by most investors. Indeed, investors’ interest in mega-cap stocks is evidenced by Vanguard Mega Cap Index Fund ETF’s (MGC) 6.4% returns over the past month and 23% gain year-to-date.
Even though the third-quarter earnings season has been impressive so far, and the stock market moved higher in response, concerns over high inflation, supply chain disruptions, and the Fed’s monetary policy tightening are expected to keep the market volatile in the near term. As investors brace for the Federal Reserve's tapering decision today, stock futures trading was mixed this morning.
Wall Street analysts expect popular mega-cap stocks Visa Inc . (NYSE:V), Alibaba Group Holding Limited (BABA), and PayPal Holdings, Inc. (PYPL) to rally by more than 30% in price in the near term. So, we think it could be worth adding these stocks to one’s watchlist.