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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.

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. Keeping that in mind, here are two large-cap stocks that still have big upside potential and one that could be stalling.

One Large-Cap Stock to Sell:

Emerson Electric (EMR)

Market Cap: $61.58 billion

Founded in 1890, Emerson Electric (NYSE:EMR) is a multinational technology and engineering company providing solutions in the industrial, commercial, and residential markets.

Why Are We Cautious About EMR?

1. Sales were flat over the last five years, indicating it’s failed to expand this cycle

2. Estimated sales growth of 4.7% for the next 12 months implies demand will slow from its two-year trend

3. Eroding returns on capital suggest its historical profit centers are aging

Emerson Electric is trading at $110.05 per share, or 18.1x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than EMR.

Two Large-Cap Stocks to Watch:

United Rentals (URI)

Market Cap: $38.8 billion

Owning the largest rental fleet in the world, United Rentals (NYSE:URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.

Why Are We Backing URI?

1. Average organic revenue growth of 10.9% over the past two years demonstrates its ability to expand independently without relying on acquisitions

2. Excellent operating margin of 25.5% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage

3. URI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $600.99 per share, United Rentals trades at 13x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.

PACCAR (PCAR)

Market Cap: $51.65 billion

Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

Why Could PCAR Be a Winner?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

2. ROIC punches in at 30.7%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets

3. Improving returns on capital reflect management’s ability to monetize investments