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 existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Carnival (CCL)
Market Cap: $39.69 billion
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Why Are We Hesitant About CCL?
- Annual sales growth of 9% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
- Negative returns on capital show management lost money while trying to expand the business
Carnival’s stock price of $30.57 implies a valuation ratio of 15.3x forward P/E. To fully understand why you should be careful with CCL, check out our full research report (it’s free).
Two Large-Cap Stocks to Watch:
Uber (UBER)
Market Cap: $205.4 billion
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Will UBER Outperform?
- Monthly Active Platform Consumers have increased by an average of 14.3% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 151% over the last three years outstripped its revenue performance
- Free cash flow margin jumped by 15.4 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Uber is trading at $98.33 per share, or 21.5x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Cigna (CI)
Market Cap: $77.51 billion
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Does CI Stand Out?
- Market share has increased this cycle as its 18.7% annual revenue growth over the last two years was exceptional
- Dominant market position is represented by its $262 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Earnings growth was above the peer group average over the last five years as its EPS compounded at 7.7% annually
At $290.36 per share, Cigna trades at 9.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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-small-cap company Comfort Systems (+782% 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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