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. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Otis (OTIS)
Market Cap: $30.04 billion
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE: OTIS) is an elevator and escalator manufacturing, installation and service company.
Why Do We Think OTIS Will Underperform?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Anticipated sales growth of 3.8% for the next year implies demand will be shaky
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.4% annually
At $78.86 per share, Otis trades at 18.4x forward P/E. Check out our free in-depth research report to learn more about why OTIS doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Analog Devices (ADI)
Market Cap: $186.2 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 Are We Fans of ADI?
- Impressive 14.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Offerings are mission-critical for businesses and lead to a top-tier gross margin of 60.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Analog Devices is trading at $399.00 per share, or 31.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
AppLovin (APP)
Market Cap: $162.7 billion
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Is APP a Top Pick?
- Annual revenue growth of 29.2% over the past two years was outstanding, reflecting market share gains
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- APP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
AppLovin’s stock price of $477.30 implies a valuation ratio of 20x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
