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2 Large-Cap Stocks for Long-Term Investors and 1 We Find Risky
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 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 that could be stalling.
One Large-Cap Stock to Sell:
Chubb (CB)
Market Cap: $130.3 billion
Dating back to when a Civil War veteran created a frost-proof water meter, Chubb Limited (NYSE:CB) provides commercial and personal property and casualty insurance, reinsurance, and life insurance products to a diverse client base across 54 countries.
Why Does CB Fall Short?
- Large revenue base constrains its growth potential, as seen in its unexciting 6.8% annualized increases in net premiums earned over the last two years fell below our expectations for the insurance sector
- Demand will likely fall over the next 12 months as Wall Street expects flat revenue
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 16.9% annually
Chubb’s stock price of $338.05 implies a valuation ratio of 1.6x forward P/B. Dive into our free research report to see why there are better opportunities than CB.
Two Large-Cap Stocks to Buy:
Carvana (CVNA)
Market Cap: $52.85 billion
Known for its glass tower car vending machines, Carvana (NYSE:CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Are We Bullish on CVNA?
- Retail Units Sold have increased by an average of 37.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Switching costs of its platform were on full display over the last two years as it not only grew engagement but also increased the average revenue per unit by 10.7% annually
- Additional sales over the last three years increased its profitability as the 43.6% annual growth in its earnings per share outpaced its revenue
Carvana is trading at $73.63 per share, or 17.4x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
ADP (ADP)
Market Cap: $105.4 billion
Processing one out of every six paychecks in the United States, ADP (NASDAQ:ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.
Why Do We Love ADP?
- Solid 7.9% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Dominant market position is represented by its $21.95 billion in revenue and gives it fixed cost leverage when sales grow
- Robust free cash flow margin of 21.7% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
At $265.51 per share, ADP trades at 21.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.