Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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 that could be stalling.
One Large-Cap Stock to Sell:
CVS Health (CVS)
Market Cap: $123.7 billion
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
Why Is CVS Not Exciting?
- Annual sales growth of 6.9% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Estimated sales growth of 1.6% for the next 12 months implies demand will slow from its two-year trend
- Annual earnings per share growth of 1.1% underperformed its revenue over the last five years, showing its incremental sales were less profitable
CVS Health’s stock price of $97.38 implies a valuation ratio of 11.9x forward P/E. If you’re considering CVS for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Veeva Systems (VEEV)
Market Cap: $44.54 billion
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE:VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Does VEEV Stand Out?
- Billings growth has averaged 17.8% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 47.4% enables it to reinvest or return capital consistently
At $274.90 per share, Veeva Systems trades at 11.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
AutoZone (AZO)
Market Cap: $48.7 billion
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Why Will AZO Beat the Market?
- Same-store sales growth averaged 3.2% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Excellent operating margin of 19% highlights the efficiency of its business model
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
AutoZone is trading at $2,976 per share, or 17.8x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.