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 is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. 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:
Twilio (TWLO)
Market Cap: $40.2 billion
Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE: TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.
Why Are We Cautious About TWLO?
- Revenue increased by 14.7% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Gross margin of 48.6% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Twilio’s stock price of $262.47 implies a valuation ratio of 6.4x forward price-to-sales. If you’re considering TWLO for your portfolio, see our FREE research report to learn more.
Two large-cap stocks to buy:
Keysight (KEYS)
Market Cap: $53.59 billion
Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.
Why Will KEYS Outperform?
- Market share has increased this cycle as its 14.7% annual revenue growth over the last two years was exceptional
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
At $315.02 per share, Keysight trades at 23x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Intuitive Surgical (ISRG)
Market Cap: $156.8 billion
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Is ISRG a Top Pick?
- Market share has increased this cycle as its 21.3% annual revenue growth over the last two years was exceptional
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 13.5 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Intuitive Surgical is trading at $452.05 per share, or 36.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
