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 is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Verizon (VZ)
Market Cap: $183 billion
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.
Why Do We Pass on VZ?
- Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
- Projected sales growth of 2.1% for the next 12 months suggests sluggish demand
- Projected 1.8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
Verizon is trading at $43.48 per share, or 9.2x forward P/E. If you’re considering VZ for your portfolio, see our FREE research report to learn more.
Capital One (COF)
Market Cap: $136.7 billion
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE:COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Does COF Worry Us?
- Scale is a double-edged sword because it limits the firm’s capital growth potential compared to its smaller competitors, as reflected in its below-average annual tangible book value per share increases of 1.3% for the last two years
At $213.83 per share, Capital One trades at 12.2x forward P/E. Check out our free in-depth research report to learn more about why COF doesn’t pass our bar.
One Large-Cap Stock to Watch:
Micron (MU)
Market Cap: $205.6 billion
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Why Are We Positive On MU?
- Annual revenue growth of 55.1% over the past two years was outstanding, reflecting market share gains this cycle
- Expected revenue growth of 43.9% for the next year suggests its market share will rise
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 24% annually
Micron’s stock price of $185.87 implies a valuation ratio of 13.8x 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
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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