Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
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 with attractive long-term potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
PACCAR (PCAR)
Market Cap: $62.12 billion
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Is PCAR Not Exciting?
- Annual sales declines of 10% for the past two years show its products and services struggled to connect with the market during this cycle
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 16.5%
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $118.09 per share, PACCAR trades at 21.4x forward P/E. To fully understand why you should be careful with PCAR, check out our full research report (it’s free).
Two Large-Cap Stocks to Watch:
Teradyne (TER)
Market Cap: $47.28 billion
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Are We Fans of TER?
- Exciting sales outlook for the upcoming 12 months calls for 32.3% growth, an acceleration from its two-year trend
- Offerings are difficult to replicate at scale and result in a stellar gross margin of 58.3%
- Industry-leading 35.7% return on capital demonstrates management’s skill in finding high-return investments
Teradyne’s stock price of $297.50 implies a valuation ratio of 48.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Wabtec (WAB)
Market Cap: $41.94 billion
Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.
Why Does WAB Stand Out?
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23% exceeded its revenue gains over the last two years
- WAB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
Wabtec is trading at $245.89 per share, or 23.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
