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 dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. 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:
Paychex (PAYX)
Market Cap: $44.9 billion
Once known as the go-to service for small business payroll needs, Paychex (NASDAQ: PAYX) provides payroll processing, HR services, employee benefits administration, and insurance solutions to small and medium-sized businesses.
Why Does PAYX Give Us Pause?
- 6.7% annual revenue growth over the last two years was slower than its software peers
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 3.1 percentage points
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 5 percentage points over the next year
Paychex’s stock price of $124.65 implies a valuation ratio of 6.8x forward price-to-sales. Read our free research report to see why you should think twice about including PAYX in your portfolio.
Two Large-Cap Stocks to Watch:
Trane Technologies (TT)
Market Cap: $92.53 billion
With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.
Why Do We Love TT?
- Impressive 11.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.7% exceeded its revenue gains over the last two years
- Industry-leading 23.8% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
Trane Technologies is trading at $416.91 per share, or 30.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
PayPal (PYPL)
Market Cap: $66.55 billion
Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal (NASDAQ: PYPL) operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.
Why Are We Positive On PYPL?
- 10.9% annual revenue growth over the last five years was better than the sector average, highlighting the value of its products and services
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 18.9% exceeded its revenue gains over the last two years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $69.59 per share, PayPal trades at 12.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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-micro-cap company Tecnoglass (+1,754% 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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