Tuesday's Big Stocks for Big Profits

When large caps make a run for it, Fools pay attention.

Think of Microsoft. After years of poor performance, Mr. Softy and his $300-billion-plus market cap kicked into gear over the summer, enriching investors who bought and stayed in.

Hence this column. For all the money to be made in fast-movers like Intervoice (Nasdaq: INTV  ) and Stock Advisor selection Dolby Laboratories (NYSE: DLB  ) , both of which hit new 52-week highs yesterday, the turtle often beats the hare. Here's a look at Tuesday's finest terrapins, courtesy of The Wall Street Journal:

Company

Closing Price

CAPS Rating (out of 5)

% Change

52-Week Range

SLM (NYSE:SLM)

$41.50

**

7.10%

$38.61-$58.00

General Growth Pptys. (NYSE:GGP)

$49.90

**

6.28%

$42.40-$67.43

Discover Financial (NYSE:DFS)

$19.00

***

5.50%

$16.91-$32.17

Limited Brands (NYSE:LTD)

$19.95

***

5.11%

$18.63-$32.60

State Street (NYSE:STT)

$78.43

*

4.98%

$59.13-$80.01

Sources: The Wall Street Journal, Yahoo! Finance, Motley Fool CAPS.

Shares of our top gainer, SLM, also known as Sallie Mae, were up for reasons not yet reported. So be it. We Fools prefer buy-to-hold stock stories anyway. Are any of our large-cap leaders worth owning over the next three to five years?

Not really -- if you believe the 74,000-plus professional and amateur stock pickers in our Motley Fool CAPS community. Don't worry too much about this, though.  Apple has spent much of its life in CAPS as a two-star stock. Those who ignored it last winter missed the double to come.

Picking up the REIT pieces
I'm not entirely sure that beleaguered real estate investment trust General Growth Properties will double over the next year, but I also don't think the CAPS consensus, which calls this a two-star stock, has it right.

Let's first acknowledge the bad news: General Growth was recently on the losing end of a California court battle that could cost it at least $74.2 million. The company has promised to appeal, but in the interim, it's reduced its third-quarter guidance.

Now for the good news. In terms of valuation, General Growth sports a modest 1.32 PEG ratio, well shy of the industry average of 2.33. Even with a courtroom defeat, I can't see how it's fair to price the United States' second-largest mall operator so far below its peers.

Nor, apparently, can Chief Financial Officer Bernard Freibaum, who last week once again bought his own company's stock. To me, that suggests high confidence in the General's meaty dividend yield -- close to 4%. I'm adding this stock to my CAPS watch list as a result.

What about you? What would you do? Let us know by signing up for CAPS today. It's 100% free to participate.

See you back here tomorrow for more of the best of the biggest.

Cap off your day with related CAPS Foolishness:


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