Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one that could be stalling.
One Large-Cap Stock to Sell:
Honeywell (HON)
Market Cap: $140.1 billion
Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.
Why Does HON Give Us Pause?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales decline of 3.1% for the next 12 months implies a challenging demand environment
- Waning returns on capital imply its previous profit engines are losing steam
At $220.40 per share, Honeywell trades at 20.3x forward P/E. Dive into our free research report to see why there are better opportunities than HON.
Two Large-Cap Stocks to Watch:
Howmet (HWM)
Market Cap: $80.67 billion
Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Do We Love HWM?
- Market share has increased this cycle as its 11.6% annual revenue growth over the last two years was exceptional
- Share repurchases over the last two years enabled its annual earnings per share growth of 41.9% to outpace its revenue gains
- Free cash flow margin grew by 11.3 percentage points over the last five years, giving the company more chips to play with
Howmet is trading at $199.98 per share, or 51.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stryker (SYK)
Market Cap: $146.4 billion
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Are We Positive On SYK?
- Average organic revenue growth of 10.2% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Revenue base of $23.82 billion gives it economies of scale and some negotiating power
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 13.3% annually
Stryker’s stock price of $383.06 implies a valuation ratio of 27.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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