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2 Large-Cap Stocks with Exciting Potential and 1 Facing Headwinds
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.
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. 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:
Salesforce (CRM)
Market Cap: $196.1 billion
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE:CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Are We Cautious About CRM?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 11.2% underwhelmed
- Anticipated sales growth of 10.4% for the next year implies demand will be shaky
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
Salesforce’s stock price of $238.90 implies a valuation ratio of 4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CRM.
Two Large-Cap Stocks to Buy:
O'Reilly (ORLY)
Market Cap: $69.76 billion
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Is ORLY a Good Business?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.9% growth over the past two years
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 19.4%
- Industry-leading 42.2% return on capital demonstrates management’s skill in finding high-return investments
O'Reilly is trading at $86.07 per share, or 24.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
DexCom (DXCM)
Market Cap: $33.01 billion
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ:DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Will DXCM Beat the Market?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 12% over the past two years
- Free cash flow margin expanded by 20.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
At $87.19 per share, DexCom trades at 31.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.