ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

2 Large-Cap Stocks with Exciting Potential and 1 Facing Headwinds

VRTX Cover Image

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?

  1. Earnings per share lagged its peers over the last two years as they only grew by 11.9% annually
  2. 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?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 14.1% annual sales growth over the last five years
  2. Robust free cash flow margin of 24.4% gives it many options for capital deployment
  3. 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?

  1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.2% over the past two years
  2. $25.12 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
  3. 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.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  204.24
-3.30 (-1.59%)
AAPL  253.09
+0.20 (0.08%)
AMD  201.45
-2.32 (-1.14%)
BAC  47.70
-0.54 (-1.11%)
GOOG  276.70
-4.04 (-1.44%)
META  538.74
-8.80 (-1.61%)
MSFT  359.63
-6.34 (-1.73%)
NVDA  170.16
-1.08 (-0.63%)
ORCL  139.65
-3.16 (-2.21%)
TSLA  365.95
-6.16 (-1.65%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.