Colgate, DirecTV: Top 5 Large-Cap Stocks - TheStreet

BOSTON (

TheStreet

) -- These companies have market caps over $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.

Colgate-Palmolive

(CL) - Get Report

sells personal hygiene 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 14% this year, beating the

Dow Jones Industrial Average

, but trailing the

S&P 500 Index

. The stock trades at a price-to-earnings ratio of 20, which is on par with the market, but a premium to household products peers. The shares offer a 2.3% dividend yield.

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