2 Large-Cap Stocks to Keep an Eye On and 1 We Question

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. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one whose momentum may slow.

One Large-Cap Stock to Sell:

State Street (STT)

Market Cap: $35.71 billion

Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE:STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.

Why Do We Think Twice About STT?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.6% over the last five years was below our standards for the financials sector
2. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.1% annually

At $127.97 per share, State Street trades at 10.9x forward P/E. If you’re considering STT for your portfolio, see our FREE research report to learn more.

Two Large-Cap Stocks to Watch:

Comfort Systems (FIX)

Market Cap: $47.09 billion

Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.

Why Do We Love FIX?

1. Average backlog growth of 34.6% over the past two years shows it has a steady sales pipeline that will drive future orders
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. Improving returns on capital reflect management’s ability to monetize investments

Comfort Systems is trading at $1,346 per share, or 43.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Xylem (XYL)

Market Cap: $31.22 billion

Formed through a spinoff, Xylem (NYSE:XYL) manufactures and services engineered products across a wide variety of applications primarily in the water sector.

Why Could XYL Be a Winner?

1. Annual revenue growth of 13.1% over the past five years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last five years increased its profitability as the 19.8% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin expanded by 3.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Xylem’s stock price of $128.07 implies a valuation ratio of 22.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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.