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华尔街日报2 Large-Cap Stocks with Solid Fundamentals and 1 Facing Challenges
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 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 with attractive long-term potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
Rockwell Automation (ROK)
Market Cap: $44.26 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 Are We Cautious About ROK?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $393.27 per share, Rockwell Automation trades at 33x forward P/E. Check out our free in-depth research report to learn more about why ROK doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Axon (AXON)
Market Cap: $45.45 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 Are We Bullish on AXON?
- Products are reaching more customers as its unit sales averaged 26.3% growth over the past two years
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 35.2% annually
Axon is trading at $571.63 per share, or 84x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stryker (SYK)
Market Cap: $135.4 billion
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Could SYK Be a Winner?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 10.2% over the past two years
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 13.1% annually
Stryker’s stock price of $354.13 implies a valuation ratio of 24.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Kadant (+351% 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.