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. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Regeneron (REGN)
Market Cap: $77.22 billion
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ: REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Why Does REGN Worry Us?
- Sizable revenue base leads to growth challenges as its 4.3% annual revenue increases over the last two years fell short of other healthcare companies
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 23.8 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Regeneron’s stock price of $748 implies a valuation ratio of 16.5x forward P/E. Dive into our free research report to see why there are better opportunities than REGN.
Two Large-Cap Stocks to Buy:
ServiceNow (NOW)
Market Cap: $158.8 billion
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE: NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Will NOW Beat the Market?
- Demand is healthy as its current remaining performance obligations (cRPO) have averaged 21.8% growth over the last year, showing it’s securing new contracts for services yet to be fulfilled
- Highly efficient business model is illustrated by its impressive 13.9% operating margin, and its rise over the last year was fueled by some leverage on its fixed costs
- NOW is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
ServiceNow is trading at $766.95 per share, or 12.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Progressive (PGR)
Market Cap: $138.6 billion
Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE: PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.
Why Are We Bullish on PGR?
- Strong 19.5% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Additional sales over the last two years increased its profitability as the 93.9% annual growth in its earnings per share outpaced its revenue
- Annual book value per share growth of 44.7% over the last two years was superb and indicates its capital strength increased during this cycle
At $235.14 per share, Progressive trades at 3.9x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
