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

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BOSTON (TheStreet) -- The following companies have market caps over $10 billion and receive "buy" ratings from our proprietary 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.

DirecTV(DTV Quote) provides digital entertainment through its satellite system.

The numbers: Second-quarter net income fell 11% to $407 million, but earnings per share remained flat at 40 cents, helped by a lower share count. Revenue grew 9% to $5.2 billion. Its gross margin decreased from 52% to 51% and its operating margin fell from 17% to 13%. A quick ratio of 1 indicates adequate liquidity. A debt-to-equity ratio of 1.3 demonstrates higher-than-ideal leverage.

The stock: DirecTV has ascended 21% this year, more than the Dow Jones Industrial Average and S&P 500 Index. The stock trades at a price-to-earnings ratio of 22, a premium to the market and cable and satellite peers. The company doesn't pay dividends.

McDonald's(MCD Quote) sells hamburgers, soft drinks and other food products.

The numbers: Second-quarter net income fell 8% to $1.1 billion and earnings per share dropped 6% to 98 cents, cushioned by a lower share count. Revenue declined 7% to $5.6 billion. Its gross margin climbed from 42% to 44% and its operating margin rose from 27% to 29%. A quick ratio of 1.1 reflects adequate liquidity. A debt-to-equity ratio of 0.8 demonstrates reasonable leverage.

The stock: McDonald's is down 8% this year, trailing major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to the market and restaurant peers. Shares pay a 3.8% dividend yield.