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.
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:
Ford (F)
Market Cap: $46.84 billion
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE: F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Why Do We Pass on F?
- Flat vehicles sold over the past two years imply it may need to invest in improvements to get back on track
- Free cash flow margin dropped by 13.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- 8× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Ford’s stock price of $11.78 implies a valuation ratio of 8.6x forward P/E. Dive into our free research report to see why there are better opportunities than F.
Two Large-Cap Stocks to Buy:
Airbnb (ABNB)
Market Cap: $83.54 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?
- 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
- Earnings growth has trumped its peers over the last three years as its EPS has compounded at 49.4% annually
- ABNB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $135.25 per share, Airbnb trades at 20.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Axon (AXON)
Market Cap: $56.8 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Will AXON Beat the Market?
- Products are seeing elevated demand as its unit sales averaged 32% growth over the past two years
- Free cash flow margin grew by 20.3 percentage points over the last five years, giving the company more chips to play with
- Rising returns on capital show the company is starting to reap the benefits of its past investments
Axon is trading at $728.20 per share, or 122.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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-micro-cap company Tecnoglass (+1,754% 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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