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. That said, 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:
CVS Health (CVS)
Market Cap: $82.29 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 Are We Hesitant About CVS?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.8% over the last two years was below our standards for the healthcare sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 4.8% annually while its revenue grew
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.9 percentage points
CVS Health is trading at $64.88 per share, or 10.1x forward P/E. To fully understand why you should be careful with CVS, check out our full research report (it’s free).
Two Large-Cap Stocks to Buy:
Quanta (PWR)
Market Cap: $57.24 billion
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Will PWR Beat the Market?
- Demand is greater than supply as the company’s 20.3% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Estimated revenue growth of 12.8% for the next 12 months implies its momentum over the last two years will continue
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 25.1% annually
At $384.94 per share, Quanta trades at 34.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Reddit (RDDT)
Market Cap: $41.31 billion
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Why Are We Backing RDDT?
- Has the opportunity to boost monetization through new features and premium offerings as its domestic daily active visitors have grown by 33.7% annually over the last two years
- Earnings per share grew by 38.6% annually over the last three years and trumped its peers
- Free cash flow margin grew by 35.1 percentage points over the last few years, giving the company more chips to play with
Reddit’s stock price of $220.71 implies a valuation ratio of 57.7x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Tecnoglass (+1,754% 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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