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.
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 three large-cap stocks whose competitive advantages create flywheel effects.
Shopify (SHOP)
Market Cap: $122.8 billion
Originally created as an internal tool for a snowboarding company, Shopify (NYSE: SHOP) provides a software platform for building and operating e-commerce businesses.
Why Should You Buy SHOP?
- Payment activity on its platform is soaring as its TPV growth averaged 31.8% over the last year, enabling the company to collect more fees and upsell additional services like banking
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Shopify’s stock price of $96.16 implies a valuation ratio of 11.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Booking (BKNG)
Market Cap: $146.5 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Are We Backing BKNG?
- Has the opportunity to boost monetization through new features and premium offerings as its room nights booked have grown by 13.6% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 33% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
Booking is trading at $4,450 per share, or 16.5x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Sea (SE)
Market Cap: $73.19 billion
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Why Is SE a Top Pick?
- 30.4% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Exciting sales outlook for the upcoming 12 months calls for 29.1% growth, an acceleration from its three-year trend
- Additional sales over the last three years increased its profitability as the 35.1% annual growth in its earnings per share outpaced its revenue
At $129.50 per share, Sea trades at 32.2x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
