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2 Large-Cap Stocks to Research Further and 1 We Question
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.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one that could be stalling.
One Large-Cap Stock to Sell:
Martin Marietta Materials (MLM)
Market Cap: $37.76 billion
Operating one of North America's largest networks of quarries, including 14 underground mines, Martin Marietta Materials (NYSE:MLM) is a natural resource-based building materials company that supplies aggregates, cement, and other construction materials for infrastructure and building projects.
Why Are We Hesitant About MLM?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Flat earnings per share over the last two years lagged its peers
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Martin Marietta Materials’s stock price of $532.06 implies a valuation ratio of 27.2x forward P/E. If you’re considering MLM for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Howmet (HWM)
Market Cap: $105.3 billion
Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Why Is HWM a Good Business?
- Impressive 13.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin increased by 12.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $265.72 per share, Howmet trades at 45.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Vertex Pharmaceuticals (VRTX)
Market Cap: $140.1 billion
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Could VRTX Be a Winner?
- Market share has increased this cycle as its 20.5% annual revenue growth over the last five years was exceptional
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- ROIC punches in at 29.5%, illustrating management’s expertise in identifying profitable investments
Vertex Pharmaceuticals is trading at $553.25 per share, or 27.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.