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 is precisely where StockStory comes in – our job is to find you high-quality companies that can win regardless of the conditions. That said, here are two large-cap stocks with attractive long-term potential and one whose momentum may slow.
Market Cap: $56.06 billion
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Does NXPI Worry Us?
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Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.1% annually over the last two years
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Estimated sales growth of 5.3% for the next 12 months is soft and implies weaker demand
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Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.4 percentage points
At $218.94 per share, NXP Semiconductors trades at 17.4x forward P/E. If you’re considering NXPI for your portfolio, see our FREE research report to learn more.
Market Cap: $38.08 billion
Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Do We Love HEI?
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Core business can prosper without any help from acquisitions as its organic revenue growth averaged 9.5% over the past two years
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Earnings per share grew by 26.2% annually over the last two years and trumped its peers
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HEI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
HEICO is trading at $315.80 per share, or 61.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Market Cap: $97.93 billion
With roots dating back to 1833, making it one of America’s oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Will MCK Beat the Market?
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Offerings and unique value proposition resonate with customers, as seen in its above-market 15.3% annual sales growth over the last two years
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Unparalleled scale of $377.6 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
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Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.3% exceeded its revenue gains over the last five years
