2 Large-Cap Stocks for Long-Term Investors and 1 We Ignore

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.

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

One Large-Cap Stock to Sell:

Interactive Brokers (IBKR)

Market Cap: $37.83 billion

Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ:IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.

Why Does IBKR Worry Us?

1. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $85 per share, Interactive Brokers trades at 32.8x forward P/E. Dive into our free research report to see why there are better opportunities than IBKR.

Two Large-Cap Stocks to Watch:

Cadence Design Systems (CDNS)

Market Cap: $100.5 billion

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ:CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Why Do We Watch CDNS?

1. Software is difficult to replicate at scale and results in a best-in-class gross margin of 87.1%
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Cadence Design Systems is trading at $362.05 per share, or 15.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Wabtec (WAB)

Market Cap: $45.5 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.

Why Will WAB Beat the Market?

1. Annual revenue growth of 9.1% over the last five years beat the sector average and underscores the unique value of its offerings
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Share repurchases over the last two years enabled its annual earnings per share growth of 19.9% to outpace its revenue gains

Wabtec’s stock price of $267.66 implies a valuation ratio of 24.7x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.