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.

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 9,000 stores primarily in the US. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It operates a top-tier health insurer (acquired through Aetna) through which it serves about 27 million medical members. The acquisition of Oak Street Health added primary care services to the mix, which could have significant synergies with all existing business lines.

CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 9,000 stores primarily in the US. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 2 billion adjusted claims annually. It operates a top-tier health insurer (acquired through Aetna) through which it serves about 27 million medical members. The acquisition of Oak Street Health added primary care services to the mix, which could have significant synergies with all existing business lines.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. In 2025, value stocks and growth stocks had similar returns, with growth advancing 13.8% and value returning 13.6%. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But in 2022, the rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks), and value stocks outpaced growth stocks that year. While growth stocks led for a few years after that, value stocks are back in the picture as investors rotate out of higher-priced AI growth stocks in search of more reasonable valuations. Value stocks tend to be more resilient in times of market uncertainty and higher volatility as they are less likely to overreact to economic news. In any event, the value sector is the place to achieve income.