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 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 whose competitive advantages create flywheel effects and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Caterpillar (CAT)
Market Cap: $169.2 billion
With its iconic yellow machinery working on construction sites, Caterpillar (NYSE: CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.
Why Are We Hesitant About CAT?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 29%
Caterpillar’s stock price of $360.29 implies a valuation ratio of 18.5x forward P/E. If you’re considering CAT for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Veeva Systems (VEEV)
Market Cap: $45.99 billion
Built on top of Salesforce as one of the first vertical-focused cloud platforms, Veeva (NYSE: VEEV) provides data and customer relationship management (CRM) software for organizations in the life sciences industry.
Why Do We Watch VEEV?
- Billings have averaged 14.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 27%, and its operating leverage amplified its profits over the last year
- Robust free cash flow margin of 41.5% gives it many options for capital deployment
At $281.43 per share, Veeva Systems trades at 14.7x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Amgen (AMGN)
Market Cap: $155.7 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Could AMGN Be a Winner?
- Solid 14.1% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- $34.13 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Amgen is trading at $289.50 per share, or 13.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
