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

TJX Companies(TJX Quote) sells clothing and household items through its T.J. Maxx, Marshall's and HomeGoods chains.

The numbers: Fiscal second-quarter net income increased 31% to $262 million and earnings per share climbed 27% to 61 cents, restrained by a higher share count. Its gross margin rose from 27% to 28% and its operating margin ascended from 7% to 9%. A quick ratio of 0.5 indicates weak liquidity, but the cash balance has grown 200% since the year-earlier period. A debt-to-equity ratio of 0.4 demonstrates conservative leverage.

The stock: TJX has ascended 87% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to the market and apparel retail peers. Shares pay a 1.3% dividend yield.

Medco Health Solutions(MHS Quote) is one of the largest pharmacy benefit managers in the U.S.

The numbers: Second-quarter net income rose 19% to $312 million and earnings per share jumped 26% to 64 cents, boosted by a lower share count. Revenue increased 17% to $15 billion. Its gross margin was little changed at 7% and its operating margin remained steady at 4%. Medco has less-than-ideal liquidity, reflected in its quick ratio of 0.9. A debt-to-equity ratio of 0.8 indicates reasonable leverage.

The stock: Medco has advanced 34% this year, beating the Dow and S&P 500. The stock trades at a price-to-earnings ratio of 24, a premium to the market and health care peers. The company does not pay dividends.

Baxter(BAX Quote) sells health-care equipment.

The numbers: Second-quarter revenue declined 2% to $3.1 billion, but net income ascended 8% to $587 million and earnings per share climbed 13% to 96 cents, boosted by a lower share count. Its gross margin increased from 56% to 57% and its operating margin rose from 22% to 24%. A quick ratio of 1.2 indicates ample liquidity and a debt-to-equity ratio of 0.6 demonstrates conservative leverage.