Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
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 two large-cap stocks that still have big upside potential and one that could be stalling.
One Large-Cap Stock to Sell:
onsemi (ON)
Market Cap: $33.65 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Does ON Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.8% annually over the last two years
- Projected sales growth of 5.1% for the next 12 months suggests sluggish demand
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 17.7 percentage points
onsemi is trading at $85.78 per share, or 28.4x forward P/E. Dive into our free research report to see why there are better opportunities than ON.
Two Large-Cap Stocks to Watch:
TJX (TJX)
Market Cap: $176.7 billion
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE: TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Could TJX Be a Winner?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.9% growth over the past two years
- Unparalleled revenue scale of $60.37 billion offsets its poor gross margin and gives it advantageous pricing and terms with suppliers
- ROIC punches in at 28.2%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
TJX’s stock price of $159.99 implies a valuation ratio of 31.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Reddit (RDDT)
Market Cap: $31.77 billion
Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.
Why Are We Backing RDDT?
- Domestic Daily Active Visitors have grown by 15.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 45.1% annually
- Strong free cash flow margin of 25.7% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
At $166.54 per share, Reddit trades at 23.1x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
