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 with attractive long-term potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Analog Devices (ADI)
Market Cap: $120 billion
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Why Does ADI Fall Short?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 12.7% annually over the last two years
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.3 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
Analog Devices’s stock price of $228.50 implies a valuation ratio of 30.8x forward P/E. Check out our free in-depth research report to learn more about why ADI doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Tractor Supply (TSCO)
Market Cap: $30 billion
Started as a mail-order tractor parts business, Tractor Supply (NASDAQ: TSCO) is a retailer of general goods such as agricultural supplies, hardware, and pet food for the rural consumer.
Why Is TSCO on Our Radar?
- Fast expansion of new stores indicates an aggressive approach to attacking untapped market opportunities
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable six-year growth trajectory
- Industry-leading 35.2% return on capital demonstrates management’s skill in finding high-return investments
At $56.65 per share, Tractor Supply trades at 25.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Monster (MNST)
Market Cap: $57.54 billion
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Will MNST Beat the Market?
- Highly efficient business model is illustrated by its impressive 27.3% operating margin
- MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Monster is trading at $59 per share, or 31.4x forward P/E. 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
When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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