2 Large-Cap Stocks Worth Your Attention and 1 Facing Challenges

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 existing offerings may be tapped out.

One Large-Cap Stock to Sell:

Texas Instruments (TXN)

Market Cap: $203.1 billion

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors.

Why Does TXN Worry Us?

1. Annual sales growth of 4.1% over the last five years lagged behind its semiconductor peers as its large revenue base made it difficult to generate incremental demand
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 15.3 percentage points
3. 19.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Texas Instruments is trading at $223.83 per share, or 34.8x forward P/E. If you’re considering TXN for your portfolio, see our FREE research report to learn more.

Two Large-Cap Stocks to Watch:

Western Digital (WDC)

Market Cap: $88.21 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 Could WDC Be a Winner?

1. Exciting sales outlook for the upcoming 12 months calls for 30.9% growth, an acceleration from its two-year trend
2. Operating margin expansion of 16.1 percentage points over the last five years shows the company optimized its expenses
3. Free cash flow margin expanded by 14.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Western Digital’s stock price of $254.82 implies a valuation ratio of 24.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Raymond James (RJF)

Market Cap: $33.02 billion

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE:RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Why Are We Fans of RJF?

1. 11.7% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 19.7% exceeded its revenue gains over the last five years
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $168.95 per share, Raymond James trades at 13.7x forward P/E. Is now the right time to buy? Find out in our full 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 9 Market-Beating Stocks. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.