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 are two large-cap stocks whose competitive advantages create flywheel effects and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Texas Instruments (TXN)
Market Cap: $202.4 billion
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors.
Why Does TXN Worry Us?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.1% over the last five years was below our standards for the semiconductor sector
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.8% annually
- Free cash flow margin shrank by 19.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $221.98 per share, Texas Instruments trades at 35.4x forward P/E. Dive into our free research report to see why there are better opportunities than TXN.
Two Large-Cap Stocks to Watch:
Capital One (COF)
Market Cap: $129.3 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 Could COF Be a Winner?
- Annual revenue growth of 20.8% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.6% over the last five years outstripped its revenue performance
- Management team has demonstrated it can invest in profitable ventures through its 10.4% five-year return on equity
Capital One’s stock price of $207.01 implies a valuation ratio of 10.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
S&P Global (SPGI)
Market Cap: $118.7 billion
Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE:SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.
Why Does SPGI Catch Our Eye?
- Products and services resonate with customers, evidenced by its respectable 10.8% annualized sales growth over the last two years
- Share buybacks propelled its annual earnings per share growth to 18.9%, which outperformed its revenue gains over the last two years
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
S&P Global is trading at $398.58 per share, or 19.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.