DirecTV, Colgate: Top 5 Large-Cap Stocks

BOSTON (TheStreet) -- These companies have market caps larger than $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.

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 19% this year, more than the Dow Jones Industrial Average, but less than the 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.

Colgate-Palmolive(CL Quote) sells personal products, such as toothpaste and soap.

The numbers: Second-quarter net income rose 14% to $562 million, or $1.07 a share. Revenue fell 6% to $3.7 billion. Its gross margin rose from 59% to 61%, and its operating margin increased from 21% to 24%. A quick ratio of 0.8 indicates less-than-ideal liquidity. A debt-to-equity ratio of 1.5 reflects higher-than-ideal leverage.

The stock: Colgate-Palmolive has advanced 17% this year, beating the Dow, but trailing the S&P 500. The stock trades at a price-to-earnings ratio of 21, on par with the market, but a premium to household product makers. The shares pay a 2.2% dividend yield.