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. Keeping that in mind, here are two large-cap stocks with attractive long-term potential and one that could be stalling.
One Large-Cap Stock to Sell:
AT&T (T)
Market Cap: $159.8 billion
Founded by Alexander Graham Bell, AT&T (NYSE: T) is a multinational telecomm conglomerate providing a range of communications and internet services.
Why Are We Out on T?
- Products and services have few die-hard fans as sales have declined by 1.3% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Free cash flow margin is projected to show no improvement next year
AT&T’s stock price of $20.59 implies a valuation ratio of 8.7x forward P/E. Dive into our free research report to see why there are better opportunities than T.
Two Large-Cap Stocks to Watch:
McKesson (MCK)
Market Cap: $94.62 billion
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Do We Love MCK?
- Annual revenue growth of 14.3% over the last two years beat the sector average and underscores the unique value of its offerings
- Enormous revenue base of $403.4 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Share repurchases over the last five years enabled its annual earnings per share growth of 17.9% to outpace its revenue gains
McKesson is trading at $786.28 per share, or 17.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Waters Corporation (WAT)
Market Cap: $35.32 billion
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Why Are We Fans of WAT?
- 13.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Market share is on track to rise over the next 12 months as its 80.1% projected revenue growth implies demand will accelerate from its two-year trend
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $379.24 per share, Waters Corporation trades at 25.2x forward P/E. Is now the time to initiate a position? 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
