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:
GE HealthCare (GEHC)
Market Cap: $32.94 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Does GEHC Give Us Pause?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings per share fell by 3.8% annually over the last four years while its revenue grew, showing its incremental sales were much less profitable
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.2 percentage points
GE HealthCare’s stock price of $74.44 implies a valuation ratio of 15.5x forward P/E. Dive into our free research report to see why there are better opportunities than GEHC.
Two Large-Cap Stocks to Buy:
Lam Research (LRCX)
Market Cap: $186.9 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 Will LRCX Outperform?
- Annual revenue growth of 11.2% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 9.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Industry-leading 64.3% return on capital demonstrates management’s skill in finding high-return investments
Lam Research is trading at $139.49 per share, or 28.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Moody's (MCO)
Market Cap: $84.36 billion
Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE:MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.
Why Are We Backing MCO?
- Solid 14.5% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- Share buybacks catapulted its annual earnings per share growth to 22.3%, which outperformed its revenue gains over the last two years
- ROE punches in at 63.8%, illustrating management’s expertise in identifying profitable investments
At $475.07 per share, Moody's trades at 29.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.