Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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 whose competitive advantages create flywheel effects and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
CVS Health (CVS)
Market Cap: $100.7 billion
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE: CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
Why Do We Think Twice About CVS?
- Annual sales growth of 6.4% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Earnings per share fell by 2.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Underwhelming 5.3% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
CVS Health’s stock price of $79.49 implies a valuation ratio of 11.5x forward P/E. Check out our free in-depth research report to learn more about why CVS doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Atlassian (TEAM)
Market Cap: $42.66 billion
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Do We Like TEAM?
- Impressive 21.4% annual revenue growth over the last two years indicates it’s winning market share
- Software is difficult to replicate at scale and results in a stellar gross margin of 83.5%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Atlassian is trading at $162.00 per share, or 6.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Cencora (COR)
Market Cap: $65.52 billion
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Are We Bullish on COR?
- Massive revenue base of $321.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Share buybacks catapulted its annual earnings per share growth to 15.1%, which outperformed its revenue gains over the last five years
- ROIC punches in at 55%, illustrating management’s expertise in identifying profitable investments
At $338.12 per share, Cencora trades at 19.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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-micro-cap company Kadant (+351% 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.
