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 that could be stalling.
One Large-Cap Stock to Sell:
Flex (FLEX)
Market Cap: $55.69 billion
Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ: FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers.
Why Are We Hesitant About FLEX?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.8% for the last two years
- Low free cash flow margin of 2.8% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Flex’s stock price of $162.00 implies a valuation ratio of 33.6x forward P/E. If you’re considering FLEX for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Cencora (COR)
Market Cap: $54.77 billion
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Is COR a Top Pick?
- Unparalleled scale of $328.7 billion in revenue enables it to spread administrative costs across a larger membership base
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $287.06 per share, Cencora trades at 15.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Cardinal Health (CAH)
Market Cap: $51.8 billion
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Could CAH Be a Winner?
- Massive revenue base of $250.7 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Projected revenue growth of 8.9% for the next 12 months indicates demand will rise above its two-year trend
- Share repurchases over the last five years enabled its annual earnings per share growth of 12.4% to outpace its revenue gains
Cardinal Health is trading at $232.99 per share, or 20.2x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
