With the stock market overall still down year-to-date (or YTD), many large-cap stocks continue to struggle. Headwinds such as high inflation, rising interest rates and the increasing chances of a global recession continue to apply pressure. However, that doesn’t mean there aren’t cheap large-cap stocks to buy.
What names am I talking about? For the most part, shares in companies where recent events have been tailwinds rather than headwinds. More specifically, a good example is basic materials and energy stocks. In addition, shares in companies operating in other sectors, while not in the green for 2022, have nonetheless held up well compared to the overall market.
Better yet, despite resiliency and strength during the current challenging market, their respective valuations have not gotten out of hand. Even after delivering a solid performance this year, these seven cheap large-cap stocks to buy are still worth a look at their current prices.
So, consider diving in now, or at the very least, adding them to your watchlist.
| Ticker | Company | Price |
| AMX | America Movil SAB de CV | $18.39 |
| CNQ | Canadian Natural Resources | $50.01 |
| MOS | Mosaic Company | $47.56 |
| MRO | Marathon Oil | $21.95 |
| PBR | Petroleo Brasileiro S.A. | $11.28 |
| SU | Suncor Energy | $31.12 |
| TS | Tenaris S.A. | $25.12 |
Cheap Large-Cap Stocks to Buy: America Movil SAB de CV (AMX)
Although slightly down YTD, Mexico-based telecom firm America Movil SAB de CV (NYSE:AMX) has held up compared to the overall market. It’s the dominant telecom company in its home market and a big player throughout Latin America. The company also has a large presence in Europe. Stateside, America Movil owns prepaid wireless provider TracFone.
Pulling back since May, now you can buy into AMX stock at a favorable price. Right now, shares trade for only 11.7 times expected 2022 earnings. Furthermore, in 2023, earnings are expected to grow by 19.2%, from $1.51 per share to $1.80 per share.
Even if the stock remains challenged going into 2023, earnings growth alone may be enough to produce solid gains for America Movil shares. With its deep economic moat, it’s also a great opportunity in terms as a buy-and-hold position for the long haul. Therefore, consider it a buy on weakness.
This stock earns an “B” rating in my Portfolio Grader.
Canadian Natural Resources (CNQ)
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Canadian Natural Resources (NYSE:CNQ) is an integrated energy company. The company is involved in many aspects of the oil and gas industry. Mainly, exploration and production activities in Western Canada, the United Kingdom’s North Sea, as well as in offshore Africa.
The big jump in energy prices resulted in a big move higher for CNQ stock earlier this year. In the past month, with oil and gas prices falling back, shares have given back much of these gains. Still, in a year where the markets are in the red, this stock is still in the green. YTD, it’s up around 18.5%.
It’s far from certain whether energy prices will keep plunging. They could, if an economic slowdown further dents demand, but this could be outweighed by supply pressures. If you’re bullish oil and gas will stay high, consider buying this cheap energy stock.
This stock earns an “A” rating in my Portfolio Grader.
Mosaic Company (MOS)
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Mosaic Company (NYSE:MOS) produces the phosphates and potash used to produce fertilizer. Russia’s invasion of Ukraine, and the resultant economic sanctions placed on Russia, resulted in a major supply shock, and a jump in fertilizer prices.
In turn, this sent MOS stock on a turbo-charged rally between February and April. More recently, though, the stock has dropped. However, it’s still up 21% YTD. Pessimism about how long the windfall will last for fertilizer producers has resulted in this stock falling to a discounted valuation.
Right now, Mosaic sells for just 3.3 times estimated earnings. It’s very possible the market has overreacted to news of falling fertilizer prices. Although prices fell considerably since June, there’s much to suggest prices will stay elevated compared to prior year levels. If this plays out, and Mosaic’s earnings remain high compared to what it reported before 2021, it could zoom back to recent highs.
This stock earns an “A” rating in my Portfolio Grader.
Cheap Large-Cap Stocks to Buy: Marathon Oil (MRO)
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If you’re looking for an energy play, Marathon Oil (NYSE:MRO) may be just the ticket. Marathon is an upstream oil and gas company, involved in the exploration and production of fossil fuels.
Why buy MRO stock? It may have a simple path to strong returns. As InvestorPlace’s Muslim Farooque detailed in a list of the best cheap oil stocks last month, this oil company isn’t ambiguous when it comes to its strategy to maximize shareholder value. It’s returning capital to shareholders, through both a big stock repurchase plan, along with its excellent forward dividend yield of 1.3%.
Despite being up nearly 35% so far in 2022, MRO stock remains cheap. Its forward price-earnings (P/E) ratio is only 5.1 times. So, if you’re looking for deep value, and an uncomplicated bull case — high oil prices, high return of capital — add this name to your portfolio.
This stock earns an “A” rating in my Portfolio Grader.
Petroleo Brasileiro S.A. (PBR)
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Even if Petroleo Brasileiro S.A. (NYSE:PBR) doesn’t sound familiar, chances are you are familiar with this Brazil-based oil company. It’s best known to U.S. investors as Petrobras. Either way, besides being Brazil’s biggest oil company, this is also one of the best cheap large-cap stocks to buy in the energy sector.
Why? PBR stock sells at an extremely low valuation. It currently has a forward P/E of just 2.8 times. It also has a high dividend. Shares also hold a dividend yield of 37.5%. Admittedly, there are some reasons behind its low earnings multiple, and high dividend yield. Investing in Brazil is risky, given its volatile economy.
This may create uncertainty when it comes to future earnings. It may also affect the future of its dividend. Or does it? High oil prices will keep PBR’s earnings at or near recent levels. In turn, help it maintain its dividend as well.
This stock earns an “A” rating in my Portfolio Grader.
Suncor Energy (SU)
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Like CNQ, Suncor Energy (NYSE:SU) is another Canadian oil stock. Shares in this integrated energy company have been volatile, in tandem with volatility in the oil and gas markets.
SU stock zoomed on rising energy prices, only to tumble more recently, as worries about the global economy have sent crude oil and natural gas prices lower. The ousting of its CEO has also affected the stock. The ousting has also resulted in downgrades from the sell-side community.
That said, shares are still up 24.2% since the start of the year. Similar to the oil and gas plays mentioned above, Suncor also trades at a low valuation and has a moderately high dividend. Right now, it has a forward dividend yield of 4.5%. Both these factors make it a promising opportunity.
This stock earns an “A” rating in my Portfolio Grader.
Cheap Large-Cap Stocks to Buy: Tenaris S.A. (TS)
Headwinds like supply shocks from the Russia-Ukraine war have been tailwinds for the basic materials sector. That’s why Tenaris S.A. (NYSE:TS), while down around 27% since the beginning of June, remains up by double-digits this year.
Post supply-shock rally, shares in this Luxembourg-based global steel producer have dropped. Concerns are mounting that a global recession will hurt steel demand. That may be the stock market’s current sentiment, but it’s not guaranteed that’s how things will play out. A drop in demand may not be as severe as expected.
If that’s the case, TS stock, trading at a low earnings multiple of 10.2 times, could bounce back. On a longer timeframe, it may continue producing solid returns for investors. How? Through both its forward dividend yield of 3.1%, as well as through continued growth through acquisitions, like its recent deal for U.S.-based Benteler Steel & Tube Manufacturing.
This stock earns an “A” rating in my Portfolio Grader.
On the date of publication, Louis Navellier had a long position in CNQ, MRO, PBR, SU and TS. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.