Five Large-Cap Stocks Poised to Grow - TheStreet

BOSTON (TheStreet) -- Investors usually buy large-cap companies for their safety, not their growth potential. Here are five with impressive growth rates and cheap shares.

5. Gilead Sciences

(GILD) - Get Report

is a biotech company.

The numbers

: Fourth-quarter profit increased 43% to $802 million, or 87 cents a share, as revenue grew 42% to $2 billion. Gilead's operating margin widened from 50% to 53%. Our stock model awards Gilead a financial strength score of 8.9 out of 10.

The stock

: Gilead fell 5.9% during the past year, lagging behind major U.S. indices. The stock trades at a price-to-earnings ratio of 17, a discount to biotechnology peers. Gilead doesn't pay dividends.

4. Oracle

(ORCL) - Get Report

sells systems software.

The numbers

: Fiscal second-quarter profit increased 13% to $1.5 billion, or 29 cents a share, as revenue grew 4% to $5.9 billion. Oracle's operating margin rose from 36% to 39%. The company holds $21 billion of cash and $15 billion of debt.

The stock

: Oracle returned 33% during the past year, beating the

Dow Jones Industrial Average

and

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 20, a discount to software peers. The shares offer a 0.9% dividend yield.

3. Colgate-Palmolive

(CL) - Get Report

sells toothpaste and soap.

The numbers

: Fourth-quarter profit increased 27% to $631 million, or $1.21 a share, as revenue grew 11% to $4.1 billion. The company's operating margin extended from 23% to 25%. The model awards Colgate-Palmolive a financial strength score of 9.9 out of 10.

The stock

: Colgate-Palmolive advanced 26% during the past year, trailing U.S. benchmarks. The stock trades at a price-to-earnings ratio of 18, a premium to household products peers. The shares offer a 2.7% dividend yield.

2. General Mills

(GIS) - Get Report

sells cereal and other food products.

The numbers

: Fiscal second-quarter profit increased 50% to $566 million, or $1.66 a share, as revenue inched up 1.7% to $4.1 billion. The company's operating margin widened from 12% to 22%. A quick ratio of 0.6 reflects poor liquidity. A 1.1 debt-to-equity ratio indicates sizable leverage.

The stock

: General Mills climbed 22% during the past year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 14, a discount to food products peers. The shares offer a 2.8% dividend yield.

1. McDonald's

(MCD) - Get Report

sells hamburgers and soft drinks through its franchises.

The numbers

: Fourth-quarter profit increased 23% to $1.2 billion, or $1.11 a share, as revenue grew 7.3% to $6 billion. The company's operating margin stretched from 26% to 28%. The model awards McDonald's a financial strength score of 9.9 out of 10.

The stock

: McDonald's climbed 12% during the past year, less than major U.S. indices. The stock trades at a price-to-earnings ratio of 15, a discount to restaurant peers. The shares offer a 3.5% dividend yield.

Five Fast-Growth Companies Rated 'Buy'