Top 5 Large-Cap Stocks: Oracle, Colgate

TSC Ratings provides exclusive stock, ETF and mutual fund recommendations using proprietary tools. Our "safety-first" approach aims to reduce risk while achieving performance on a total return basis.

The following large-cap companies have market values of more than $10 billion and receive "buy" ratings from our proprietary quantitative model, which considers more than 60 factors. The stocks are ordered by their potential to appreciate.

McDonald's(MCD Quote) franchises and operates hamburger restaurants worldwide.

The numbers: First-quarter revenue declined 10% to $5.07 billion but net income increased marginally to $980 million and earnings per share jumped 7% to 87 cents. Net margin remained strong at 20%. A 32% decline in the cash balance to $1.98 billion is a weakness. But a quick ratio of 1.3 and a debt-to-equity ratio of 0.8 indicate a conservative financial position.

The stock: McDonald's has declined 8% in 2009, underperforming the Dow Jones Industrial Average and the S&P 500. The stock trades at a price-to-earnings ratio of 15 and offers a dividend yield of 3.5%.

Colgate-Palmolive(CL Quote) makes and markets consumer products worldwide.

The numbers: First-quarter revenue decreased 6% to $3.5 billion but net income climbed 9% to $508 million as earnings per share jumped 13% to 97 cents. The company has established a five-quarter streak of earnings growth despite recessionary pressures. Gross margin increased and is high at 60%. Net operating cash flow ascended 21% as the cash balance improved 9% to $702 million.

The stock: Colgate-Palmolive has climbed 6% in 2009, outperforming the Dow and the S&P 500. The stock trades at a price-to-earnings ratio of 20 and offers a 2.4% dividend yield.

Medco Health Solutions(MHS Quote) is one of the nation's largest pharmacy-benefit managers, providing sophisticated traditional and specialty benefit programs.

The numbers: First-quarter revenue rose 14% to $14.8 billion, beating the industry average growth rate of 1.1%. Net income increased 8% to $291 million and earnings per share improved 16% to 58 cents. Net operating cash flow increased 607%. The company has added $1.3 billion to the cash balance since the prior year's first quarter.

The stock: Medco has ascended 13% in 2009, outperforming the Dow and the S&P 500. The stock is trading at a price-to-earnings ratio of 21 and doesn't pay dividends.