Megacap stocks are behemoths that set the tone for their industries, and their massive scale typically leads to wide moats. However, the downside is that most have already exploited their existing market opportunities and must invest heavily to expand further, a risky proposition.

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 that could be stalling.

One Mega-Cap Stock to Sell:

Bank of America (BAC)

Market Cap: $378.3 billion

Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.

Why Do We Think Twice About BAC?

1. Annual net interest income growth of 6.7% over the last five years lagged behind its banking peers as its large revenue base made it difficult to generate incremental demand
2. Inferior net interest margin of 2% means it must compensate for lower profitability through increased loan originations
3. Estimated tangible book value per share growth of 6.2% for the next 12 months implies profitability will slow from its two-year trend

At $52.40 per share, Bank of America trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including BAC in your portfolio.

Two Mega-Cap Stocks to Buy:

Meta (META)

Market Cap: $1.63 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 Do We Love META?

1. Monetization efforts are paying off as its average revenue per user has grown by 14.8% annually over the last two years
2. Share buybacks catapulted its annual earnings per share growth to 40.1%, which outperformed its revenue gains over the last three years
3. META is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Meta is trading at $648.37 per share, or 11.8x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Eli Lilly (LLY)

Market Cap: $973.6 billion

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE: LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Why Is LLY a Top Pick?

1. Impressive 36.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Adjusted operating margin improvement of 20.8 percentage points over the last two years demonstrates its ability to scale efficiently
3. Share buybacks catapulted its annual earnings per share growth to 29.5%, which outperformed its revenue gains over the last five years

Eli Lilly’s stock price of $1,087 implies a valuation ratio of 34.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.