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3 Large-Cap Stocks with Solid Fundamentals

ABNB Cover Image

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. That said, here are three large-cap stocks with attractive long-term potential.

Airbnb (ABNB)

Market Cap: $77.31 billion

Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.

Why Are We Bullish on ABNB?

  1. Nights and Experiences Booked have grown by 10.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
  2. Earnings growth has trumped its peers over the last three years as its EPS has compounded at 49.4% annually
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Airbnb is trading at $125.15 per share, or 18.6x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Robinhood (HOOD)

Market Cap: $42.88 billion

With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Why Is HOOD a Top Pick?

  1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 43.1% annual growth in its average revenue per user
  2. Incremental sales over the last three years have been highly profitable as its earnings per share increased by 41.2% annually, topping its revenue gains
  3. Free cash flow margin expanded by 1,103.9 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

At $48.49 per share, Robinhood trades at 22x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

Cadence (CDNS)

Market Cap: $84.14 billion

With the name chosen to reflect the idea of a repeating pattern or rhythm in electronic design, Cadence Design Systems (NASDAQ: CDNS) offers a software-as-a-service platform for semiconductor engineering and design.

Why Should CDNS Be on Your Watchlist?

  1. Winning new contracts that can potentially increase in value as its billings growth has averaged 24% over the last year
  2. Prominent and differentiated software culminates in a best-in-class gross margin of 85.9%
  3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Cadence’s stock price of $308.07 implies a valuation ratio of 15.8x forward price-to-sales. Is now a good time to buy? See for yourself in our full 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 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.

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