2 Large-Cap Stocks to Own for Decades 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.
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 two large-cap stocks that still have big upside potential and one whose momentum may slow.
One Large-Cap Stock to Sell:
United Airlines (UAL)
Market Cap: $36.28 billion
Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
Why Are We Bearish on UAL?
- Sluggish trends in its revenue passenger miles suggest customers aren’t adopting its solutions as quickly as the company hoped
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 3.8 percentage points over the next year
- Returns on capital are growing as management invests in more worthwhile ventures
United Airlines is trading at $111.78 per share, or 9.7x forward P/E. If you’re considering UAL for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Buy:
Charles Schwab (SCHW)
Market Cap: $170.1 billion
Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE:SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.
Why Will SCHW Beat the Market?
- Annual revenue growth of 18.6% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 40.3% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
At $98.31 per share, Charles Schwab trades at 13.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Progressive (PGR)
Market Cap: $122.6 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 Will PGR Outperform?
- Annual revenue growth of 15.9% over the past two years was outstanding, reflecting market share gains this cycle
- Net premiums earned expanded by 14.9% annually over the last two years, demonstrating exceptional market penetration this cycle
- Industry-leading 24.7% return on equity demonstrates management’s skill in finding high-return investments
Progressive’s stock price of $211.53 implies a valuation ratio of 3.4x forward P/B. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.