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.
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 with attractive long-term potential and one that could be stalling.
One Large-Cap Stock to Sell:
Microchip Technology (MCHP)
Market Cap: $35.69 billion
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Do We Pass on MCHP?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.2% annually over the last five years
- Sales were less profitable over the last five years as its earnings per share fell by 18.5% annually, worse than its revenue declines
- Free cash flow margin shrank by 15.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Microchip Technology’s stock price of $66.53 implies a valuation ratio of 38.3x forward P/E. If you’re considering MCHP for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Cloudflare (NET)
Market Cap: $78.26 billion
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE: NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Why Are We Backing NET?
- Billings growth has averaged 30.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Expected revenue growth of 26.3% for the next year suggests its market share will rise
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $224.75 per share, Cloudflare trades at 32.8x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Fiserv (FI)
Market Cap: $68.36 billion
Powering over 1 billion accounts and processing more than 12,000 financial transactions per second globally, Fiserv (NYSE: FI) provides payment processing and financial technology solutions that enable merchants, banks, and credit unions to accept payments and manage financial transactions.
Why Could FI Be a Winner?
- Annual revenue growth of 8.5% over the last two years was above the sector average and underscores its products and services value to customers
- Share buybacks propelled its annual earnings per share growth to 18.5%, which outperformed its revenue gains over the last five years
Fiserv is trading at $126.50 per share, or 11.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. 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
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