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. Keeping that in mind, here are two industry titans with attractive long-term potential and one whose existing offerings may be tapped out.
One mega-cap stock to sell:
ExxonMobil (XOM)
Market cap: $690.5 billion
One of the successor companies to John D. Rockefeller's Standard Oil monopoly that was broken up in 1911, ExxonMobil (NYSE: XOM) explores for and produces crude oil and natural gas, refines and sells petroleum products, and manufactures petrochemicals.
Why Does XOM Fall Short?
- The company has faced growth challenges as its 9.9% annual revenue increases over the last five years fell short of other energy upstream and integrated energy companies
- Gross margin of 43.6% is below its competitors, leaving less money to invest in exploration and production
- Day-to-day expenses have swelled relative to revenue over the last five years as its EBITDA margin fell by 2 percentage points
ExxonMobil’s stock price of $169.38 implies a valuation ratio of 12.5x forward P/E. Check out our free in-depth research report to learn more about why XOM doesn’t pass our bar.
Two mega-cap stocks to buy:
CrowdStrike (CRWD)
Market cap: $247.3 billion
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Will CRWD Outperform?
- Average billings growth of 26% over the last year enhances its liquidity and shows there is steady demand for its products
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $241.25 per share, CrowdStrike trades at 38.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Meta (META)
Market cap: $1.61 trillion
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Is META a Good Business?
- 21.9% annual increases in its average revenue per user over the last two years show its platform is resonating with power users
- Highly efficient business model is illustrated by its impressive 59.8% EBITDA margin, and its operating leverage amplified its profits over the last few years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 38% exceeded its revenue gains over the last three years
Meta is trading at $630.40 per share, or 9.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks we like even more
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.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
