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 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 with attractive long-term potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Corning (GLW)
Market Cap: $72.08 billion
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Is GLW Not Exciting?
- Annual sales growth of 4% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Free cash flow margin dropped by 4.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
Corning’s stock price of $84.78 implies a valuation ratio of 31.6x forward P/E. To fully understand why you should be careful with GLW, check out our full research report (it’s free for active Edge members).
Two Large-Cap Stocks to Watch:
Zscaler (ZS)
Market Cap: $48.74 billion
Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.
Why Is ZS a Top Pick?
- Ability to secure long-term commitments with customers is evident in its 22.6% ARR growth over the last year
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Robust free cash flow margin of 27.2% gives it many options for capital deployment
At $306.99 per share, Zscaler trades at 14.7x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Republic Services (RSG)
Market Cap: $69.71 billion
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Could RSG Be a Winner?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.8% annual sales growth over the last five years
- Healthy operating margin of 18.8% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 13.5% enables it to reinvest or return capital consistently
Republic Services is trading at $223.28 per share, or 31.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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
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