Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.

This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here are two large-cap stocks that still have big upside potential and one whose momentum may slow.

One Large-Cap Stock to Sell:

Starbucks (SBUX)

Market Cap: $108.2 billion

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Are We Wary of SBUX?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
2. Estimated sales growth of 4.4% for the next 12 months implies demand will slow from its six-year trend
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 3.6 percentage points

Starbucks is trading at $95.10 per share, or 30.2x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.

Two Large-Cap Stocks to Watch:

Yum! Brands (YUM)

Market Cap: $41.93 billion

Spun off as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.

Why Are We Positive On YUM?

1. Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations
2. Excellent operating margin of 32.1% highlights the efficiency of its business model
3. Strong free cash flow margin of 18.9% enables it to reinvest or return capital consistently

At $150.85 per share, Yum! Brands trades at 24.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

W.W. Grainger (GWW)

Market Cap: $50.21 billion

Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.

Why Does GWW Stand Out?

1. Operating margin expanded by 5.1 percentage points over the last five years as it scaled and became more efficient
2. Share repurchases over the last five years enabled its annual earnings per share growth of 18.9% to outpace its revenue gains
3. ROIC punches in at 35.6%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

W.W. Grainger’s stock price of $1,044 implies a valuation ratio of 25.1x forward P/E. Is now a good time to buy? Find out in our full 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 Exlservice (+354% 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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