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2 Large-Cap Stocks on Our Watchlist and 1 Facing Headwinds

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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 is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here are two large-cap stocks that still have big upside potential and one whose momentum may slow.

One Large-Cap Stock to Sell:

CSX (CSX)

Market Cap: $92.87 billion

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

Why Do We Avoid CSX?

  1. Disappointing unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
  2. Flat earnings per share over the last two years lagged its peers
  3. Free cash flow margin shrank by 6.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

CSX is trading at $50.37 per share, or 23.4x forward P/E. To fully understand why you should be careful with CSX, check out our full research report (it’s free).

Two Large-Cap Stocks to Watch:

Uber (UBER)

Market Cap: $155 billion

Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.

Why Will UBER Outperform?

  1. Monthly Active Platform Consumers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
  2. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Free cash flow margin jumped by 13.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Uber’s stock price of $75.73 implies a valuation ratio of 12.7x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.

AMETEK (AME)

Market Cap: $58.74 billion

Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.

Why Should AME Be on Your Watchlist?

  1. Annual revenue growth of 9.8% over the last five years beat the sector average and underscores the unique value of its offerings
  2. Excellent operating margin of 25.4% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
  3. Robust free cash flow margin of 21.7% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

At $256.25 per share, AMETEK trades at 30x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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.

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