1 Large-Cap Stock for Long-Term Investors and 2 We Turn Down

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 is one large-cap stock that still has big upside potential and two whose existing offerings may be tapped out.

Two Large-Cap Stocks to Sell:

Keurig Dr Pepper (KDP)

Market Cap: $36.44 billion

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Are We Wary of KDP?

1. Sizable revenue base leads to growth challenges as its 5.8% annual revenue increases over the last three years fell short of other consumer staples companies
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5.9 percentage points
3. ROIC of 5.8% reflects management’s challenges in identifying attractive investment opportunities

Keurig Dr Pepper’s stock price of $26.80 implies a valuation ratio of 12.6x forward P/E. To fully understand why you should be careful with KDP, check out our full research report (it’s free).

GE HealthCare (GEHC)

Market Cap: $35.89 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 Fall Short?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Performance over the past four years shows its incremental sales were much less profitable, as its earnings per share fell by 3.8% annually
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.2 percentage points

At $78.51 per share, GE HealthCare trades at 16.5x forward P/E. Check out our free in-depth research report to learn more about why GEHC doesn’t pass our bar.

One Large-Cap Stock to Buy:

Datadog (DDOG)

Market Cap: $44.95 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?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 26.5% growth over the last year
2. Forecasted revenue growth of 21.7% for the next 12 months indicates its momentum over the last two years is sustainable
3. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale

Datadog is trading at $128.47 per share, or 13x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.