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.
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 three large-cap stocks that still have big upside potential.
Market Cap: $161.2 billion
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Will KLAC Beat the Market?
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Impressive 16.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
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Offerings are mission-critical for businesses and result in a best-in-class gross margin of 60.8%
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Strong free cash flow margin of 30.8% enables it to reinvest or return capital consistently
KLA Corporation’s stock price of $1,210 implies a valuation ratio of 33.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Market Cap: $172.2 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Could AMGN Be a Winner?
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Solid 15.8% annual revenue growth over the last two years indicates its offering’s solve complex business issues
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Economies of scale give it some operating leverage when demand rises
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Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
At $319.60 per share, Amgen trades at 15.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Market Cap: $113 billion
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE:BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Why Is BX a Good Business?
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Market share has increased this cycle as its 19.2% annual revenue growth over the last five years was exceptional
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Fee-related earnings increased by 22.7% annually over the last five years as it refined its cost structure
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Earnings per share grew by 19.7% annually over the last five years, comfortably beating the peer group average
