2 Large-Cap Stocks to Own for Decades and 1 We Brush Off
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.
This dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. That said, here are two large-cap stocks with attractive long-term potential and one that could be stalling.
Market Cap: $32.94 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Does GEHC Give Us Pause?
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Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
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Earnings per share fell by 3.8% annually over the last four years while its revenue grew, showing its incremental sales were much less profitable
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Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.2 percentage points
GE HealthCare’s stock price of $74.44 implies a valuation ratio of 15.5x forward P/E. Dive into our free research report to see why there are better opportunities than GEHC.
Market Cap: $186.9 billion
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Will LRCX Outperform?
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Annual revenue growth of 11.2% over the past two years was outstanding, reflecting market share gains this cycle
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Free cash flow margin expanded by 9.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
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Industry-leading 64.3% return on capital demonstrates management’s skill in finding high-return investments
Lam Research is trading at $139.49 per share, or 28.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Market Cap: $84.36 billion
Founded in 1900 during America’s railroad boom when investors needed reliable information on bond risks, Moody’s (NYSE:MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.

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