Five Large-Cap Stocks Poised to Climb

1. McDonald's(MCD Quote) sells hamburgers, soft drinks and French fries through restaurant franchises.

The numbers: Third-quarter net income increased 6% to $1.3 billion, or $1.15 a share, as revenue declined 4% to $6 billion. The company's gross margin rose from 43% to 45%, and its operating margin increased from 28% to 31%. A quick ratio of 0.9 reflects less-than-ideal liquidity. A debt-to-equity ratio of 0.8 indicates reasonable leverage.

The stock: McDonald's has climbed 3% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to the market and restaurants. The shares pay a 3.4% dividend yield.

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