
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.
This dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. That said, here are two large-cap stocks that still have big upside potential and one that could be stalling.
One Large-Cap Stock to Sell:
Chubb (CB)
Market Cap: $126.3 billion
Dating back to when a Civil War veteran created a frost-proof water meter, Chubb Limited (NYSE: CB) provides commercial and personal property and casualty insurance, reinsurance, and life insurance products to a diverse client base across 54 countries.
Why Is CB Not Exciting?
- Earnings per share lagged its peers over the last two years as they only grew by 11.9% annually
- Large asset base makes it harder to grow book value per share quickly, and its annual book value per share growth of 7.4% over the last five years was below our standards for the insurance sector
At $323.37 per share, Chubb trades at 1.5x forward P/B. Check out our free in-depth research report to learn more about why CB doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Vertex Pharmaceuticals (VRTX)
Market Cap: $115.3 billion
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ: VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Should VRTX Be on Your Watchlist?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 14.1% annual sales growth over the last five years
- Robust free cash flow margin of 24.4% gives it many options for capital deployment
- Industry-leading 40.4% return on capital demonstrates management’s skill in finding high-return investments
Vertex Pharmaceuticals’s stock price of $456.56 implies a valuation ratio of 23.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stryker (SYK)
Market Cap: $127.3 billion
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Could SYK Be a Winner?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.2% over the past two years
- $25.12 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 12.9% outstripped its revenue performance
Stryker is trading at $332.85 per share, or 21.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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