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3 Mega-Cap Stocks to Research Further

INTU Cover Image

"Too big to fail" is how we would describe the megacap stocks in this article today. While they will likely stand the test of time, it’s not all sunshine and rainbows as their scale can limit their ability to find new sources of growth.

Sound complicated? With StockStory, it doesn’t have to be. Our job is to find you high-quality companies that can win regardless of the conditions. That said, here are three industry titans that still have big upside potential.

Intuit (INTU)

Market Cap: $213.9 billion

Created in 1983 when founder Scott Cook watched his wife struggle to reconcile the family's checkbook, Intuit provides tax and accounting software for small and medium-sized businesses.

Why Could INTU Be a Winner?

  1. Billings growth has averaged 15.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
  2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
  3. Robust free cash flow margin of 33.6% gives it many options for capital deployment

Intuit’s stock price of $758.24 implies a valuation ratio of 10.5x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Costco (COST)

Market Cap: $466.6 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 Will COST Beat the Market?

  1. Comparable store sales rose by 5% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
  2. Unparalleled revenue scale of $268.8 billion offsets its poor gross margin and gives it advantageous pricing and terms with suppliers
  3. Industry-leading 34.2% return on capital demonstrates management’s skill in finding high-return investments

Costco is trading at $1,050 per share, or 54.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

McDonald's (MCD)

Market Cap: $222.8 billion

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

Why Are We Positive On MCD?

  1. Average same-store sales growth of 2.8% over the past two years indicates its restaurants are resonating with diners
  2. Attractive franchise model leads to wonderful unit economics and a best-in-class gross margin of 56.9%
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $314 per share, McDonald's trades at 24.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

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 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.

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