
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 is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. 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:
Fiserv (FISV)
Market Cap: $33.89 billion
Powering over 1 billion accounts and processing more than 12,000 financial transactions per second globally, Fiserv (NASDAQ: FISV) provides payment processing and financial technology solutions that enable merchants, banks, and credit unions to accept payments and manage financial transactions.
Why Are We Wary of FISV?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 5.3% for the last two years
- Earnings per share lagged its peers over the last two years as they only grew by 7% annually
- Low return on equity reflects management’s struggle to allocate funds effectively
Fiserv’s stock price of $63.15 implies a valuation ratio of 7.8x forward P/E. Check out our free in-depth research report to learn more about why FISV doesn’t pass our bar.
Two Large-Cap Stocks to Watch:
Altria (MO)
Market Cap: $112.1 billion
Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.
Why Could MO Be a Winner?
- Products command premium prices and lead to a best-in-class gross margin of 71.1%
- Excellent operating margin of 52.1% highlights the efficiency of its business model
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it’s becoming even less capital-intensive
At $66.83 per share, Altria trades at 11.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Pfizer (PFE)
Market Cap: $155.6 billion
With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE: PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.
Why Do We Like PFE?
- Average organic revenue growth of 10.1% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Massive revenue base of $62.58 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Adjusted operating margin expanded by 17.8 percentage points over the last two years as it scaled and became more efficient
Pfizer is trading at $27.33 per share, or 9.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
