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.
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. That said, here are two large-cap stocks whose competitive advantages create flywheel effects and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Vulcan Materials (VMC)
Market Cap: $40.43 billion
Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.
Why Are We Cautious About VMC?
- Sluggish trends in its tons shipped suggest customers aren’t adopting its solutions as quickly as the company hoped
- Anticipated sales growth of 4.4% for the next year implies demand will be shaky
- Gross margin of 25.2% is below its competitors, leaving less money to invest in areas like marketing and R&D
Vulcan Materials’s stock price of $305.68 implies a valuation ratio of 32.1x forward P/E. If you’re considering VMC for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
Parker-Hannifin (PH)
Market Cap: $119.2 billion
Founded in 1917, Parker Hannifin (NYSE: PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Why Does PH Catch Our Eye?
- Disciplined cost controls and effective management resulted in a strong long-term operating margin of 18.2%, and its operating leverage amplified its profits over the last five years
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- 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
At $944.18 per share, Parker-Hannifin trades at 30.4x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Motorola Solutions (MSI)
Market Cap: $66.72 billion
Born from the company that invented the first portable handheld police radio in 1940, Motorola Solutions (NYSE: MSI) provides mission-critical communications, video security, and command center software solutions for public safety agencies and enterprise customers.
Why Will MSI Beat the Market?
- Solid 8.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Economies of scale give it distribution advantages and fixed cost leverage when sales grow
- Strong free cash flow margin of 18.8% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
Motorola Solutions is trading at $400.45 per share, or 25.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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.
