2 Large-Cap Stocks Worth Your Attention and 1 We Brush Off

Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.

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 whose competitive advantages create flywheel effects and one whose momentum may slow.

One Large-Cap Stock to Sell:

Bristol-Myers Squibb (BMY)

Market Cap: $96.68 billion

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Why Does BMY Give Us Pause?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 2.7% for the last two years
2. Forecasted revenue decline of 4.6% for the upcoming 12 months implies demand will fall off a cliff
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Bristol-Myers Squibb’s stock price of $47.51 implies a valuation ratio of 7.4x forward P/E. If you’re considering BMY for your portfolio, see our FREE research report to learn more.

Two Large-Cap Stocks to Buy:

O'Reilly (ORLY)

Market Cap: $88.11 billion

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Is ORLY a Top Pick?

1. Comparable store sales rose by 3.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Differentiated product assortment leads to a best-in-class gross margin of 51.3%
3. Strong free cash flow margin of 11.1% enables it to reinvest or return capital consistently

O'Reilly is trading at $103.20 per share, or 33.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Trane Technologies (TT)

Market Cap: $90.86 billion

With low-pressure heating systems as its first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Will TT Beat the Market?

1. Annual revenue growth of 11.1% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities

At $408.49 per share, Trane Technologies trades at 29.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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