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 dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. Keeping that in mind, here are two large-cap stocks with attractive long-term potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
Microchip Technology (MCHP)
Market Cap: $36.31 billion
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Is MCHP Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.2% annually over the last five years
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 20.6% annually, worse than its revenue
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 14.5 percentage points
Microchip Technology’s stock price of $66.44 implies a valuation ratio of 33.6x forward P/E. To fully understand why you should be careful with MCHP, check out our full research report (it’s free for active Edge members).
Two Large-Cap Stocks to Watch:
Booking (BKNG)
Market Cap: $175.9 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Are We Fans of BKNG?
- Strong consumer demand for its platform drove 17.6% annual revenue growth over the last three years, outperforming sector peers
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 34.1% exceeded its revenue gains over the last three years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Booking is trading at $5,429 per share, or 16.1x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Carvana (CVNA)
Market Cap: $63.35 billion
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA Interesting?
- Retail Units Sold have increased by an average of 31.4% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 38.5% over the last three years outstripped its revenue performance
- Free cash flow margin grew by 19.3 percentage points over the last few years, giving the company more chips to play with
At $446.44 per share, Carvana trades at 25.8x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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.
