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.

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. Keeping that in mind, here are two large-cap stocks whose competitive advantages create flywheel effects and one whose momentum may slow.

One Large-Cap Stock to Sell:

Corning (GLW)

Market Cap: $45.04 billion

Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.

Why Do We Avoid GLW?

1. Annual sales growth of 1.8% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. 4.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. ROIC of 5.2% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

Corning is trading at $52.25 per share, or 22x forward P/E. To fully understand why you should be careful with GLW, check out our full research report (it’s free).

Two Large-Cap Stocks to Watch:

Applied Materials (AMAT)

Market Cap: $147.5 billion

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.

Why Are We Positive On AMAT?

1. Impressive 12.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 29.3%, and its profits increased over the last five years as it scaled
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $184.10 per share, Applied Materials trades at 19.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

KLA Corporation (KLAC)

Market Cap: $118.9 billion

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

Why Are We Bullish on KLAC?

1. Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
2. Excellent operating margin of 35.9% highlights the efficiency of its business model, and its operating leverage amplified its profits over the last five years
3. Strong free cash flow margin of 31.2% enables it to reinvest or return capital consistently

KLA Corporation’s stock price of $902 implies a valuation ratio of 28.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% 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