Megacap stocks dominate their sectors and their actions influence economies worldwide. The flip side though is that their sheer size means they have less room for explosive growth as scale works against them.
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 three industry titans that still have big upside potential.
Microsoft (MSFT)
Market Cap: $2.98 trillion
Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.
Why Will MSFT Beat the Market?
- Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
- The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
- Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.
At $402.20 per share, Microsoft trades at 22.4x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Lam Research (LRCX)
Market Cap: $288.5 billion
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Is LRCX a Good Business?
- Market share has increased this cycle as its 19.8% annual revenue growth over the last two years was exceptional
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 31.9%, and it turbocharged its profits by achieving some fixed cost leverage
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Lam Research is trading at $230.76 per share, or 34.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Goldman Sachs (GS)
Market Cap: $291.4 billion
Founded in 1869 as a small commercial paper business in New York City, Goldman Sachs (NYSE:GS) is a global financial institution that provides investment banking, securities, asset management, and consumer banking services to corporations, governments, and individuals.
Why Do We Like GS?
- 12.3% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Annual tangible book value per share growth of 10.8% over the last two years beat the financials sector average and underscores the improved strength of its balance sheet
Goldman Sachs’s stock price of $930.50 implies a valuation ratio of 15.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
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