Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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. That said, here are two large-cap stocks that still have big upside potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
CVS Health (CVS)
Market Cap: $118.6 billion
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE: CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
Why Does CVS Give Us Pause?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.3% over the last two years was below our standards for the healthcare sector
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Earnings per share fell by 1.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
CVS Health is trading at $93.11 per share, or 12.1x forward P/E. Check out our free in-depth research report to learn more about why CVS doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Vertiv (VRT)
Market Cap: $120.7 billion
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Will VRT Beat the Market?
- Average organic revenue growth of 23.7% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin expanded by 22.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are climbing as management makes more lucrative bets
At $316.66 per share, Vertiv trades at 46.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Intuitive Surgical (ISRG)
Market Cap: $150 billion
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Should ISRG Be on Your Watchlist?
- Market share has increased this cycle as its 20.2% annual revenue growth over the last two years was exceptional
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ISRG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
Intuitive Surgical’s stock price of $423.50 implies a valuation ratio of 39.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
