Tesla is a vertically integrated battery electric vehicle automaker and developer of autonomous driving software. The company has multiple vehicles in its fleet, which include luxury and midsize sedans, crossover SUVs, a light truck, and a semi truck. Tesla also plans to begin selling more affordable vehicles, a sports car, and a robotaxi. Global deliveries in 2024 were a little below 1.8 million vehicles. The company sells batteries for stationary storage for residential and commercial properties including utilities and solar panels and solar roofs for energy generation. Tesla also owns a fast-charging network.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Are there stock gems hiding in plain sight? Last week, we profiled Shooting Stars and Fallen Angels from 2024. This week, we look ahead, seeking possible hidden treasure in the form of large, undervalued stocks. Why is this cluster interesting to us? Mega-cap stocks usually are well-known entities and have proven their worth as both value and growth stocks. Often, they are resilient companies, with experienced management teams that have weathered a variety of storms and have come out stronger. Over time, they have delivered high performance, therefore building a track record. We like monitoring this group to uncover any undervalued gems. To gather our list of companies this week, we used the Argus Research Screening Tool with the following criteria: stocks must be on the Argus BUY list, have a market cap over $200 billion, and currently trading below their 52-week high. We note that many sectors are represented, but Healthcare shows up the most. Below are the top 20 Argus universe companies that fit this criteria.

In this edition, opportunities bloom in Asia market despite tariff threats; Amazon said to have eye on hailing Lyft; a mixed bag for Tesla; and Nike, Nanosonics, and Geely Automobile Holdings.