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 two large-cap stocks with attractive long-term potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
Emerson Electric (EMR)
Market Cap: $72.38 billion
Founded in 1890, Emerson Electric (NYSE: EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.
Why Are We Wary of EMR?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.9 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Emerson Electric is trading at $129.80 per share, or 20.2x forward P/E. Read our free research report to see why you should think twice about including EMR in your portfolio.
Two Large-Cap Stocks to Watch:
Xylem (XYL)
Market Cap: $34.81 billion
Formed through a spinoff, Xylem (NYSE: XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.
Why Are We Positive On XYL?
- Annual revenue growth of 20.1% over the past two years was outstanding, reflecting market share gains this cycle
- Offerings are mission-critical for businesses and lead to a premier gross margin of 37.6%
- Earnings per share grew by 15.9% annually over the last two years and trumped its peers
Xylem’s stock price of $142.50 implies a valuation ratio of 29.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Cencora (COR)
Market Cap: $59.52 billion
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Will COR Beat the Market?
- Enormous revenue base of $316.7 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Share buybacks catapulted its annual earnings per share growth to 15.2%, which outperformed its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $307 per share, Cencora trades at 18.1x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
