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.
This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. Keeping that in mind, here are three large-cap stocks whose competitive advantages create flywheel effects.
AppLovin (APP)
Market Cap: $160.8 billion
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Are We Backing APP?
- Annual revenue growth of 30.4% over the last two years was superb and indicates its market share is rising
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Strong free cash flow margin of 71.9% enables it to reinvest or return capital consistently
At $447.54 per share, AppLovin trades at 17.8x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Elevance Health (ELV)
Market Cap: $86.69 billion
Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.
Why Are We Fans of ELV?
- Products and services resonate with customers, evidenced by its respectable 9.9% annualized sales growth over the last five years
- Enormous revenue base of $198.3 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- ROIC punches in at 26.5%, illustrating management’s expertise in identifying profitable investments
Elevance Health is trading at $384.46 per share, or 14.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Kinder Morgan (KMI)
Market Cap: $69.77 billion
Operating what amounts to the toll roads of the energy industry, Kinder Morgan (NYSE:KMI) transports natural gas, refined petroleum products, and crude oil through its pipeline network across North America.
Why Should KMI Be on Your Watchlist?
- Massive revenue base of $17.53 billion makes it a household name that influences purchasing decisions
- EBITDA profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Robust free cash flow margin of 20.4% gives it many options for capital deployment
Kinder Morgan’s stock price of $33.05 implies a valuation ratio of 22.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
