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 whose competitive advantages create flywheel effects and one whose momentum may slow.
One Large-Cap Stock to Sell:
Western Digital (WDC)
Market Cap: $57.97 billion
Founded in 1970 by a Motorola employee, Western Digital (NASDAQ: WDC) is a leading producer of hard disk drives, SSDs and flash memory.
Why Are We Hesitant About WDC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.4% annually over the last five years
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14.9%
- Low returns on capital reflect management’s struggle to allocate funds effectively
Western Digital’s stock price of $169.61 implies a valuation ratio of 21.1x forward P/E. If you’re considering WDC for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Buy:
Datadog (DDOG)
Market Cap: $53.5 billion
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ:DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.
Why Is DDOG a Top Pick?
- Ability to secure long-term commitments with customers is evident in its 26.5% ARR growth over the last year
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $152.28 per share, Datadog trades at 14.3x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
HCA Healthcare (HCA)
Market Cap: $111.5 billion
With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE:HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.
Why Is HCA a Good Business?
- Unparalleled scale of $74.37 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin jumped by 11.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
HCA Healthcare is trading at $482.20 per share, or 16.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
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 5 Growth Stocks for this month. 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 Comfort Systems (+782% 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
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