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.
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. 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:
Hershey (HSY)
Market Cap: $37.56 billion
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Why Do We Think Twice About HSY?
- Declining unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Efficiency has decreased over the last year as its operating margin fell by 4.4 percentage points
- Earnings per share were flat over the last three years and fell short of the peer group average
Hershey is trading at $185.36 per share, or 32.7x forward P/E. Check out our free in-depth research report to learn more about why HSY doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Lam Research (LRCX)
Market Cap: $161.6 billion
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Could LRCX Be a Winner?
- Annual revenue growth of 12.9% over the last five years was superb and indicates its market share increased during this cycle
- Free cash flow margin jumped by 7.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- Industry-leading 64.1% return on capital demonstrates management’s skill in finding high-return investments
Lam Research’s stock price of $128.13 implies a valuation ratio of 31.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Ross Stores (ROST)
Market Cap: $48.61 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Does ROST Stand Out?
- Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.1% growth over the past two years
- Industry-leading 29.6% return on capital demonstrates management’s skill in finding high-return investments
At $149.39 per share, Ross Stores trades at 22.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 6 Stocks for this week. 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-small-cap company Exlservice (+354% 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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