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 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 with attractive long-term potential and one whose existing offerings may be tapped out.

One Large-Cap Stock to Sell:

NXP Semiconductors (NXPI)

Market Cap: $52.52 billion

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

Why Is NXPI Not Exciting?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.3% annually over the last two years
2. Sales are projected to tank by 4.8% over the next 12 months as its demand continues evaporating
3. Free cash flow margin shrank by 8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

NXP Semiconductors’s stock price of $206.40 implies a valuation ratio of 16x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than NXPI.

Two Large-Cap Stocks to Buy:

Copart (CPRT)

Market Cap: $51.13 billion

Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.

Why Will CPRT Beat the Market?

1. Annual revenue growth of 15.2% over the past five years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last five years increased its profitability as the 18.3% annual growth in its earnings per share outpaced its revenue
3. Strong free cash flow margin of 21.8% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

Copart is trading at $53 per share, or 32x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

Wabtec (WAB)

Market Cap: $31.05 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Are We Bullish on WAB?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.8% over the past two years
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin jumped by 7.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $182.35 per share, Wabtec trades at 20.9x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.

Put yourself in the driver’s seat by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.