Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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. Keeping that in mind, 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:
Regeneron (REGN)
Market Cap: $63.97 billion
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ: REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Why Does REGN Worry Us?
- Sizable revenue base leads to growth challenges as its 6.7% annual revenue increases over the last two years fell short of other healthcare companies
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 12.3 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Regeneron’s stock price of $605.39 implies a valuation ratio of 15.1x forward P/E. Read our free research report to see why you should think twice about including REGN in your portfolio.
Two Large-Cap Stocks to Watch:
Ross Stores (ROST)
Market Cap: $45.68 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 Are We Positive On ROST?
- Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.5% growth over the past two years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities
At $138.93 per share, Ross Stores trades at 21.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Zoetis (ZTS)
Market Cap: $74.41 billion
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Should ZTS Be on Your Watchlist?
- Constant currency growth averaged 9.1% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- ZTS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Zoetis is trading at $167.14 per share, or 27.1x 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
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
