The equity benchmarks rose sharply in the last trading session because the Fed provided an interest-rate-increase timeline, removing some uncertainty in the equity markets. Nevertheless, rising inflation and a new coronavirus variant continue to hang like a pall over the markets. But Wall Street analysts still expect a more than 25% upside in the large-cap stocks of Walt Disney (DIS), PayPal (NASDAQ:PYPL), and Comcast (CMCSA). Read on to learn why.On Wednesday, stock prices rose as some uncertainties related to Fed’s monetary policies were put to rest. The S&P 500 rose 1.63%, while the Dow Jones Industrial Average added 383.25 points, or 1.08%, as the Fed signaled it would accelerate the unwinding of its monthly bond buying and forecasted its rate hikes next year.
However, the CBOE Volatility Index (^VIX) has risen 17% over the past month because the stock market is unnerved by rising inflation and the COVID-19 omicron variant. But because the Fed has moved to accelerate its reduction of asset purchases, but not so regarding interest rate hikes, fundamentally solid large-cap stocks can be valuable additions to one’s watchlist to ensure a stable return.
Wall Street expects the large-cap stocks of The Walt Disney Company (NYSE:DIS), PayPal Holdings, Inc. (PYPL), and Comcast Corporation (NASDAQ:CMCSA) to rally more than 25% in price in the near term.