In this article, we will be taking a look at the top 20 most valuable American companies today. To skip our detailed analysis, you can go directly to see the top 5 most valuable American companies today.
When the U.S. sneezes, the world catches a cold. This one saying illustrates the importance of the U.S. economy to the world, the country with the highest GDP in the world not just in 2022 but for at least a century now. Over the past decade, the U.S. economy has seen performance levels that will be impossible for even it to replicate in the future, and its higher government spending and tax cuts have helped cash flow through global markets in addition to domestic markets. One example of U.S. influence on the global economy can be seen in the 2008 recession, which started off in the U.S., but its impact reverberated across the world as the U.S. was driving global growth rates, led by the most valuable American companies today.
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Currently, the U.S., like most countries, has struggled to contain record inflation, which in turn have led to consistent hikes in interest rates by the Federal Reserve and has seen its economic growth slow down. Towards the end of 2022, fears of a recession in the U.S. were continuing to increase, even as U.S. stock markets saw their worst first half in nearly half a century. Most stocks, with a particular focus on tech, were absolutely devastated and the NASDAQ-100, where most of the top tech stocks including many of the most valuable American companies today are listed, finished with a full-year loss of 32.4% while the S&P 500 recorded a loss of 18.1%. However, a more positive than expected landing delayed fears of a recession, and now, expectations of a recession in 2024 are abating further, with an expected growth rate of 1.5% for 2024, after a spectacular landing in Q3 2023.
Even as the warnings of a recession continued to ramp up, the U.S. delivered growth of nearly 5% in Q3 2023, with an increase in wages from a tight labor market contributing to increased consumer spending and hence, an uplift in the country's economy. On the other hand, there is still some cause for concern as business investment declined for the first time in two years, and while the performance in Q3 was extraordinary, growth in Q4 is still expected to slow down as student loan payments resume, strikes from the United Auto Workers take place and the delayed impact of rate hikes affects performance. According to a Morgan Stanley report in August 2023, consumer spending declining in 2024 is a major risk for the country as current household savings are estimated to be a mere $350 billion, and student loans and credit-card balances could result in household savings running out in Q1 2024. Additionally, the U.S. Treasury is likely to issue around $1 trillion in debt in 2023 which would make the financial system of the U.S. more illiquid and the Bank of Japan allowing the country's interest rates to increase could also see more investment being diverted to the Asian giant.
One of the primary drivers behind the economic dominance of the U.S. is its innovation, which is why it is the most advanced country in the world. This is also why tech stocks are generally among the most valuable American companies today, and further innovations will continue to help in advancing America's economy. One such example is the country's advancements in Artificial Intelligence (AI), which is perhaps the hottest industry in the world right now. Some of the most valuable companies in America today have invested heavily in AI, and we'll discuss their investments and approaches to AI in more detail when mentioning which companies make our list.
Similarly, tech stocks have dominated U.S. stock performance in 2023, and rebounded strongly from the disastrous performance in 2022. The total return of the Nasdaq composite in 2023 has been 22.51% YTD, and many top tech stocks have seen their share price more than double in these 10 months! However, what goes up, must come down and in the past few days, Nasdaq has taken a beating after some tech stocks underperformed expectations in Q3 2023 and suffered heavy losses. However, towards the end of the week starting 23rd October, Nasdaq did see its performance increase thanks to confidence boosting performances from some of the most valuable American companies today.
To determine the most valuable American companies today, we headed over to Yahoo Finance and first determined the 100 most valuable American companies today, which were then sorted by their market cap. The two most valuable companies in the world are both American companies, and while being the most valuable doesn't directly have an exact co-relation to having the highest revenue, the largest U.S. company by revenue, Walmart Inc. (NYSE:WMT), is also among the most valuable companies in the U.S.
20. The Home Depot, Inc. (NYSE:HD)
Market cap as at 27th October 2023 (in $ billions): 276.5
The Home Depot, Inc. (NYSE:HD) is the biggest home improvement company in America and has close to half a million employees. In 2023 YTD, The Home Depot, Inc. (NYSE:HD) has decline by nearly 13%.
Madison Sustainable Equity Fund made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2023 investor letter:
“We updated the sustainable scorecard for The Home Depot, Inc. (NYSE:HD) and maintained our Above Average Rating. Home Depot’s corporate responsibilities focus on three pillars: focusing on its people, operating sustainably, and strengthening its communities. Home Depot continues to focus on its people by investing billions of dollars in wages, training, and benefit enhancement. The company’s environmental targets include the reduction of direct (Scope 1) and indirect (Scope 2) emissions by 42% by 2030, as well as a 25% decrease in emissions related to the “use of products sold” (Scope 3 emissions). Both targets are from a 2020 base year.
Separately, The Home Depot Foundation announced that it will invest $6 million in skilled trades training to address the 400,000 job openings across the construction industry. This grant launches a new program that will provide free, skilled trades training and scholarships for veterans and military families.”
19. Oracle Corporation (NYSE:ORCL)
Market cap as at 27th October 2023 (in $ billions): 276.7
Oracle Corporation (NYSE:ORCL) is one of the largest software companies in the world by revenue, and one of the most valuable companies in America today.
Madison Sustainable Equity Fund made the following comment about Oracle Corporation (NYSE:ORCL) in its Q3 2023 investor letter:
“NextEra, Estee Lauder, Target, Oracle Corporation (NYSE:ORCL), and TE Connectivity were the largest detractors. Oracle reported another solid quarter but its guidance for its second fiscal quarter of 2024 was lower than expected due to moving Cerner customers to the cloud and the related change in revenue recognition.”
18. Mastercard Incorporated (NYSE:MA)
Market cap as at 27th October 2023 (in $ billions): 341.4
Mastercard Incorporated (NYSE:MA) is one of the most well-known companies in the world because of its grip on the financial payments industry, and recently beat estimates as a result of an increase in travel spending.
Baron FinTech Fund made the following comment about Mastercard Incorporated (NYSE:MA) in its second quarter 2023 investor letter:
“We modestly trimmed Visa Inc., Mastercard Incorporated (NYSE:MA), and Accenture plc to manage the position sizes and raise capital to fund purchases elsewhere. These stocks remain full-sized positions and high-conviction ideas in the Fund.
Another fintech industry trend we’re seeing is a pickup in M&A activity, most notably in the payments sector. The year started with Nuvei’s $1.3 billion acquisition of Paya announced in January. In April, Network International received an initial takeover offer from a group of private equity firms, which was then topped by Brookfield Asset Management whose $2.8 billion offer was accepted by the Board in June. Following reports earlier this year of a bidding war between Visa Inc. and Mastercard Incorporated to acquire cloud-based issuer processor and core banking software provider Pismo.”
17. Broadcom Inc. (NASDAQ:AVGO)
Market cap as at 27th October 2023 (in $ billions): 346.0
Broadcom Inc. (NASDAQ:AVGO) is a major player in America's semiconductor industry, and plunged 3.5% on October 26, 2023, with one of the several reasons behind this stock price fall being lower than expected iPhone sales, for which Broadcom Inc. (NASDAQ:AVGO) is a supplier.
16. The Procter & Gamble Company (NYSE:PG)
Market cap as at 27th October 2023 (in $ billions): 346.8
The most valuable FMCG company in America, The Procter & Gamble Company (NYSE:PG) owns some of the most famous brands in the world, including Kellogg's and Pringles. In an example of how important ESG is for the success of a company, at its annual shareholder meeting, The Procter & Gamble Company (NYSE:PG) saw shareholders holding tens of billions of dollars worth of stock expressing dissatisfaction over irresponsible forest sourcing.
15. Johnson & Johnson (NYSE:JNJ)
Market cap as at 27th October 2023 (in $ billions): 377.7
The pharmaceutical company with the highest revenue in the world, Johnson & Johnson (NYSE:JNJ) is considering a third bankruptcy filing right now after facing more than 50,000 lawsuits which have linked its Baby Powder to cancer. To add to its troubles, Johnson & Johnson (NYSE:JNJ) also recently missed out on its medical devices segment sales after which it decided to restructure its orthopedic business.
14. JPMorgan Chase & Co. (NYSE:JPM)
Market cap as at 27th October 2023 (in $ billions): 392.2
JPMorgan Chase & Co. (NYSE:JPM) is one of the biggest and most influential banks in the U.S., and one of the most valuable companies in America right now. The CEO of JPMorgan Chase & Co. (NYSE:JPM) recently warned that the world was facing its most dangerous time in decades, amid the Russian invasion of Ukraine and the Israeli invasion of Gaza in retaliation to attacks by Hamas. Based on its latest earnings reports for Q3 2023, JPMorgan Chase & Co. (NYSE:JPM) topped profit expectations due to higher interest rates.
13. Exxon Mobil Corporation (NYSE:XOM)
Market cap as at 27th October 2023 (in $ billions): 418.3
The most valuable oil company in the U.S. and one of the biggest oil companies in the world, Exxon Mobil Corporation (NYSE:XOM) recently announced its Q3 2023 results where earnings landed at $9.1 billion, which meant missing out on analyst forecasts and saw its stock price fall 5% in just 5 days ending on October 27, 2023.
12. Walmart Inc. (NYSE:WMT)
Market cap as at 27th October 2023 (in $ billions): 433.8
Walmart Inc. (NYSE:WMT) is the company with the highest revenue in the world, and is also the largest private employer in the world. Walmart Inc. (NYSE:WMT) has also registered a double-digit growth in its stock price in YTD 2023.
11. Visa Inc. (NYSE:V)
Market cap as at 27th October 2023 (in $ billions): 474.1
Visa Inc. (NYSE:V) is one of the biggest financial services companies in the world right now, and one of the most valuable companies in America today. Recently, Visa Inc. (NYSE:V) announced that it would open a major global tech hub in Poland, and will be Visa Inc.'s (NYSE:V) fifth such global hub.
10. UnitedHealth Group Incorporated (NYSE:UNH)
Market cap as at 27th October 2023 (in $ billions): 486.0
One of the most valuable healthcare companies in the world, UnitedHealth Group Incorporated (NYSE:UNH) recently invested $5 million in a fund called Enable Ventures, which aims to help improve the standard of living for people with disabilities.
Madison Sustainable Equity Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2023 investor letter:
"The top contributors in the quarter were Eli Lilly, Jacobs, Alphabet, Costco, and UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth responded well to a solid second quarter, with a better medical loss ratio driving the better-than-expected results. Additionally, UNH modestly raised guidance for the full year. We updated the sustainable scorecard for UnitedHealth Group. The company continues to have Above Average Corporate Governance with a clear policy on separating the roles of the Chair of the Board and the CEO. We also rate the company Above Average on Social factors due to its clear cybersecurity, privacy, and data governance policies. The company continues to diversify its top management positions, where 40% of top management positions are held by women, up from 37% in 2020. We reduced our Environment rating to Average from Above Average as the company has significantly expanded its footprint in the last few years by acquiring local providers. The company is at the beginning of its journey to source renewable electricity for 100% of its operations by 2030."
9. Eli Lilly and Company (NYSE:LLY)
Market cap as at 27th October 2023 (in $ billions): 531.8
The most valuable pharmaceutical company in America and one of the most valuable American companies today, Eli Lilly and Company (NYSE:LLY) has had an exceptional year, particularly for a pharmaceutical company, with its share price increasing by over 50%. Eli Lilly and Company's (NYSE:LLY) brilliant performance has been driven by its diabetes business.
Madison Sustainable Equity Fund made the following comment about Eli Lilly and Company (NYSE:LLY) in its Q3 2023 investor letter:
“Eli Lilly and Company (NYSE:LLY) again moved higher in the third quarter. The stock has continued to be fueled by its diabetes franchise, in particular Mounjaro, which has been approved for use in diabetes but is also expected to be approved in obesity later this year. We are also waiting for approval of donanemab for Alzheimer’s which should occur by year end.”
8. Tesla, Inc. (NASDAQ:TSLA)
Market cap as at 27th October 2023 (in $ billions): 659.0
The most valuable car company in the world, Tesla, Inc. (NASDAQ:TSLA) saw its share price plummet in 2022, losing 65% of its total value with production issues in Shanghai and investor frustration with CEO Elon Musk driving the issue. Tesla, Inc. (NASDAQ:TSLA) has turned things around by nearly doubling its share price in 2023 but even then, is 9% below where it was just a year ago.
7. Berkshire Hathaway Inc. (NYSE:BRK-A)
Market cap as at 27th October 2023 (in $ billions): 723.5
Berkshire Hathaway Inc. (NYSE:BRK-A) is run by one of the most famous investors in history in the world in Warren Buffet, and you can learn more about his favorite dividend stocks by visiting the best value dividend stocks according to Warren Buffett. Recently, many investors have been moving towards oil companies and Berkshire Hathaway Inc. (NYSE:BRK-A) also resumed its purchase of Occidental Petroleum shares.
6. Meta Platforms, Inc. (NASDAQ:META)
Market cap as at 27th October 2023 (in $ billions): 762.6
The short-term failure of the metaverse, which has been the focus of Meta Platforms, Inc. (NASDAQ:META), saw its stock price in freefall in 2022, but a remarkable recovery has seen a gain of nearly 200% in the last one year alone, rewarding patient investors. A large part of this strong recovery has been due to the company's focus on AI.
“Our best performing stocks this quarter were Meta Platforms, Inc. (NASDAQ:META), Alphabet and Heidelberg Materials. Meta was the largest contributor to performance. Its shares have almost fully recovered from last year’s declines, rising 35% during the quarter and 138% YTD. During the quarter, the company reported earnings that showed a return to growth and healthy user engagement metrics. Most importantly, profitability appears to have stabilized and is poised to improve as significant cost reduction actions implemented over the past six months begin to have an impact. Separate from fundamental performance, there is excitement over AI’s potential to help the company’s business. While Meta’s technology prowess and massively scaled media platform certainly position the company to take advantage of AI, we believe it’s far too early to estimate any discrete tangible benefits. Overall, we view AI as one of several drivers that will contribute to Meta’s continued growth.”
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Disclosure: None. Top 20 most valuable American companies today is originally published on Insider Monkey.