2 Large-Cap Stocks Worth Investigating and 1 We Turn Down
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. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
onsemi (ON)
Market Cap: $38.7 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Is ON Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 14.8% annually over the last two years
- Estimated sales growth of 5.1% for the next 12 months is soft and implies weaker demand
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 17.7 percentage points
onsemi’s stock price of $97.98 implies a valuation ratio of 33.5x forward P/E. Read our free research report to see why you should think twice about including ON in your portfolio.
Two Large-Cap Stocks to Watch:
Stryker (SYK)
Market Cap: $125.4 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?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.2% over the past two years
- $25.12 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Incremental sales over the last five years boosted profitability as its annual earnings per share growth of 12.9% outstripped its revenue performance
At $329.30 per share, Stryker trades at 22x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Texas Pacific Land (TPL)
Market Cap: $30.26 billion
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE:TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Why Will TPL Outperform?
- Annual revenue growth of 26.2% over the past ten years was outstanding, reflecting market share gains this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 95%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Texas Pacific Land is trading at $436.59 per share, or 32.8x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth 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.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
