Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. Keeping that in mind, here are three large-cap stocks with attractive long-term potential.
Shopify (SHOP)
Market Cap: $143.7 billion
Originally created as an internal tool for a snowboarding company, Shopify (NYSE: SHOP) provides a software platform for building and operating e-commerce businesses.
Why Is SHOP a Top Pick?
- Payment activity on its platform is soaring as its TPV growth averaged 31.7% over the last year, enabling the company to collect more fees and upsell additional services like banking
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Shopify is trading at $109.40 per share, or 12.4x forward price-to-sales. Is now a good time to buy? See for yourself in our full research report, it’s free.
Chipotle (CMG)
Market Cap: $70.49 billion
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE: CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Is CMG a Good Business?
- Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
- Average same-store sales growth of 6.2% over the past two years indicates its restaurants are resonating with diners
- Dominant market position is represented by its $11.49 billion in revenue and gives it fixed cost leverage when sales grow
Chipotle’s stock price of $52.38 implies a valuation ratio of 39.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
ADP (ADP)
Market Cap: $129.6 billion
Processing one out of every six paychecks in the United States, ADP (NASDAQ: ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.
Why Should ADP Be on Your Watchlist?
- Massive revenue base of $20.2 billion makes it a well-known name that influences purchasing decisions
- Strong free cash flow margin of 18.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
- Rising returns on capital show management is finding more attractive investment opportunities
At $322.85 per share, ADP trades at 30.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 176% over the last five years.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
