Megacap stocks are behemoths that set the tone for their industries, and their massive scale typically leads to wide moats. However, the downside is that most have already exploited their existing market opportunities and must invest heavily to expand further, a risky proposition.
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 three industry titans that still have big upside potential.
Costco (COST)
Market Cap: $448.7 billion
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Should COST Be on Your Watchlist?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 5.9% over the past two years
- Dominant market position is represented by its $280.4 billion in revenue, which compensates for its subpar gross margin
- Industry-leading 34.2% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities
At $1,006 per share, Costco trades at 47.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Coca-Cola (KO)
Market Cap: $350.8 billion
A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.
Why Is KO on Our Radar?
- Dominant market position is represented by its $48.06 billion in revenue, which gives it negotiating power with suppliers and retailers
- Differentiated product offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 61.3%
- Healthy operating margin of 25% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
Coca-Cola’s stock price of $81.68 implies a valuation ratio of 24.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
American Express (AXP)
Market Cap: $212.1 billion
Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.
Why Should You Buy AXP?
- Annual revenue growth of 16.4% over the past five years was outstanding, reflecting market share gains this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 32.6% exceeded its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
American Express is trading at $309.23 per share, or 19.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
