Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
This dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. Keeping that in mind, here are two large-cap stocks with attractive long-term potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Verisk (VRSK)
Market Cap: $44.71 billion
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Are We Wary of VRSK?
- Muted 1.9% annual revenue growth over the last five years shows its demand lagged behind its business services peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8.7% annually
Verisk’s stock price of $319.60 implies a valuation ratio of 44.2x forward P/E. Dive into our free research report to see why there are better opportunities than VRSK.
Two Large-Cap Stocks to Watch:
Uber (UBER)
Market Cap: $179 billion
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Will UBER Beat the Market?
- Monthly Active Platform Consumers have increased by an average of 13.9% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 183% outpaced its revenue gains
- Free cash flow margin jumped by 17.7 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Uber is trading at $85.65 per share, or 20.2x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
ResMed (RMD)
Market Cap: $36.91 billion
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Are We Fans of RMD?
- Average constant currency growth of 12% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Additional sales over the last five years increased its profitability as the 15.7% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 7.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $252.20 per share, ResMed trades at 24.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
