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.
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. That said, 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:
Royal Caribbean (RCL)
Market Cap: $77.23 billion
Established in 1968, Royal Caribbean Cruises (NYSE: RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Why Should You Sell RCL?
- Demand for its offerings was relatively low as its number of passenger cruise days has underwhelmed
- Free cash flow margin is expected to increase by 1.2 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
- Underwhelming 6% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $316.50 per share, Royal Caribbean trades at 18.4x forward P/E. If you’re considering RCL for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Seagate (STX)
Market Cap: $196.4 billion
One of two remaining major hard drive manufacturers after decades of industry consolidation, Seagate (NASDAQ: STX) manufactures hard disk drives and solid state drives that store data in data centers, cloud systems, and consumer devices.
Why Do We Love STX?
- Annual revenue growth of 32.6% over the past two years was outstanding, reflecting market share gains this cycle
- Operating margin expanded by 10.7 percentage points over the last five years as it scaled and became more efficient
- Free cash flow margin increased by 9.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Seagate’s stock price of $901.50 implies a valuation ratio of 42.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Coinbase (COIN)
Market Cap: $42.27 billion
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Do We Watch COIN?
- Remarkable 28.5% revenue growth over the last two years demonstrates its ability to capture significant market share
- Prominent and differentiated platform culminates in a best-in-class gross margin of 85.9%
- COIN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Coinbase is trading at $148.80 per share, or 12.8x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
