Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
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. 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:
Zoetis (ZTS)
Market Cap: $30.39 billion
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Are We Wary of ZTS?
- Muted 2.7% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Projected sales decline of 1.7% for the next 12 months points to a tough demand environment ahead
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
At $73.72 per share, Zoetis trades at 11.8x forward P/E. If you’re considering ZTS for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Buy:
Ares (ARES)
Market Cap: $32.38 billion
With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE: ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.
Why Will ARES Beat the Market?
- Annual revenue growth of 24.3% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 19.5% annually
Ares is trading at $142.19 per share, or 22.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Progressive (PGR)
Market Cap: $120.6 billion
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Is PGR a Top Pick?
- Annual revenue growth of 15.9% over the past two years was outstanding, reflecting market share gains this cycle
- Market penetration was impressive this cycle as its net premiums earned expanded by 14.9% annually over the last two years
- Industry-leading 24.7% return on equity demonstrates management’s skill in finding high-return investments
At $207.82 per share, Progressive trades at 3.4x forward P/B. Is now the right time to buy? See for yourself in our in-depth 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
