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.
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. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
Martin Marietta Materials (MLM)
Market Cap: $33.96 billion
Operating one of North America's largest networks of quarries, including 14 underground mines, Martin Marietta Materials (NYSE: MLM) is a natural resource-based building materials company that supplies aggregates, cement, and other construction materials for infrastructure and building projects.
Why Does MLM Worry Us?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.5% annually over the last two years
- Earnings per share were flat over the last two years and fell short of the peer group average
- Underwhelming 8.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
Martin Marietta Materials is trading at $612.50 per share, or 30.6x forward P/E. Dive into our free research report to see why there are better opportunities than MLM.
Two Large-Cap Stocks to Watch:
Carvana (CVNA)
Market Cap: $48.58 billion
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA on Our Radar?
- Remarkable 21% revenue growth over the last three years demonstrates its ability to capture significant market share
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 40.3% annually, topping its revenue gains
- Free cash flow margin jumped by 12.1 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $67.46 per share, Carvana trades at 16.1x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Pfizer (PFE)
Market Cap: $149.2 billion
With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE: PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.
Why Could PFE Be a Winner?
- Enormous revenue base of $63.32 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Industry-leading 18.1% return on capital demonstrates management’s skill in finding high-return investments
Pfizer’s stock price of $24.10 implies a valuation ratio of 8.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.
