2 Large-Cap Stocks with Impressive Fundamentals and 1 We Ignore
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. That said, 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:
3M (MMM)
Market Cap: $83.73 billion
Producers of the first asthma inhaler, 3M Company (NYSE:MMM) is a global conglomerate known for products in industries like healthcare, safety, electronics, and consumer goods.
Why Is MMM Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share have dipped by 2.3% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- ROIC of 7.2% reflects management’s challenges in identifying attractive investment opportunities
3M is trading at $160.56 per share, or 17.8x forward P/E. Read our free research report to see why you should think twice about including MMM in your portfolio.
Two Large-Cap Stocks to Buy:
Snowflake (SNOW)
Market Cap: $94.23 billion
Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE:SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.
Why Is SNOW a Top Pick?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 31.4% over the last year
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Snowflake’s stock price of $270.75 implies a valuation ratio of 14.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Ross Stores (ROST)
Market Cap: $72.44 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Are We Bullish on ROST?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Same-store sales growth averaged 5.4% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Industry-leading 30.7% return on capital demonstrates management’s skill in finding high-return investments
At $227.23 per share, Ross Stores trades at 28.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.