McDonald's, Baxter: Top 5 Large-Cap Stocks

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BOSTON (TheStreet) -- These companies have market caps over $10 billion and "buy" ratings from our quantitative model, which considers more than 60 factors. They're ordered by their potential to appreciate, starting with the company with the best growth prospects.

Oracle(ORCL Quote) sells business software worldwide.

The numbers: Fiscal fourth-quarter net income fell 7% to $1.9 billion as revenue declined 5% to $6.9 billion. Its gross margin rose from 82% to 84% and its operating margin remained steady at 43%. The company holds $13 billion of cash reserves, amounting to a quick ratio of 1.9. A debt-to-equity ratio of 0.4 indicates conservative leverage.

The stock: Oracle has increased 23% this year, outpacing the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 20, which is equal to the market, but a discount to software peers. The shares offer a dividend yield less than 1%.

McDonald's(MCD Quote) sells hamburgers and French fries at its fast-food franchises.

The numbers: Second-quarter net income fell 8% to $1.1 billion, or 98 cents. Revenue declined 7% to $5.6 billion. Its gross margin climbed from 42% to 44% and its operating margin climbed from 27% to 29%. The company's quick ratio of 1.1, debt-to-equity ratio of 0.8 and consistent dividend growth reflect its stability. We give McDonald's a financial strength score of 8.5 out of 10, higher than the "buy"-list average of 7.

The stock: McDonald's is down 10% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and restaurants. The shares offer a 3.6% dividend yield.