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. Keeping that in mind, here are two large-cap stocks with attractive long-term potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
Electronic Arts (EA)
Market Cap: $43.31 billion
Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.
Why Does EA Fall Short?
- Sales trends were unexciting over the last three years as its 1.2% annual growth was below the typical consumer internet company
- Projected sales growth of 2.2% for the next 12 months suggests sluggish demand
- Efficiency has decreased over the last few years as its EBITDA margin fell by 6.1 percentage points
Electronic Arts is trading at $173.07 per share, or 14.5x forward EV/EBITDA. Check out our free in-depth research report to learn more about why EA doesn’t pass our bar.
Two Large-Cap Stocks to Buy:
Robinhood (HOOD)
Market Cap: $110.9 billion
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Is HOOD a Top Pick?
- Customers are spending more money on its platform as its average revenue per user has increased by 40.9% annually over the last two years
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 54.6% annually, topping its revenue gains
- Robust free cash flow margin of 67% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
Robinhood’s stock price of $124.64 implies a valuation ratio of 53.4x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Coinbase (COIN)
Market Cap: $87.99 billion
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Are We Backing COIN?
- Monetization efforts are paying off as its average revenue per user has grown by 56.8% annually over the last two years
- Earnings per share have massively outperformed its peers over the last two years, increasing by 96.4% annually
- Strong free cash flow margin of 25.7% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
At $342.75 per share, Coinbase trades at 28.6x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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