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. 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:
Rockwell Automation (ROK)
Market Cap: $40.9 billion
One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.
Why Do We Think Twice About ROK?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Rockwell Automation’s stock price of $363 implies a valuation ratio of 29.2x forward P/E. Read our free research report to see why you should think twice about including ROK in your portfolio.
Two Large-Cap Stocks to Buy:
Axon (AXON)
Market Cap: $39.27 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Is AXON a Top Pick?
- Offerings are pivotal for their customers' operations as its ARR has averaged 39.4% growth over the past two years
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Earnings per share have massively outperformed its peers over the last two years, increasing by 28.8% annually
At $488.82 per share, Axon trades at 64x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Charles Schwab (SCHW)
Market Cap: $164.1 billion
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE: SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Will SCHW Outperform?
- Impressive 15.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.9% exceeded its revenue gains over the last two years
- Industry-leading 14.4% return on equity demonstrates management’s skill in finding high-return investments
Charles Schwab is trading at $93.49 per share, or 15.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
