1 Large-Cap Stock to Research Further and 2 We Brush Off

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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.

This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. Keeping that in mind, here is one large-cap stock that still has big upside potential and two whose existing offerings may be tapped out.

Two Large-Cap Stocks to Sell:

Nasdaq (NDAQ)

Market Cap: $54.36 billion

Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.

Why Are We Cautious About NDAQ?

  1. Incremental sales over the last two years were less profitable as its 7.4% annual earnings per share growth lagged its revenue gains

Nasdaq is trading at $94.51 per share, or 27.6x forward P/E. To fully understand why you should be careful with NDAQ, check out our full research report (it’s free).

U.S. Bancorp (USB)

Market Cap: $75.99 billion

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

Why Does USB Give Us Pause?

  1. Sizable revenue base leads to growth challenges as its 4.9% annual net interest income increases over the last five years fell short of other banking companies
  2. Inferior net interest margin of 2.7% means it must compensate for lower profitability through increased loan originations
  3. 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 2% for the last five years

U.S. Bancorp’s stock price of $48.99 implies a valuation ratio of 1.3x forward P/B. Read our free research report to see why you should think twice about including USB in your portfolio.

One Large-Cap Stock to Watch:

Altria (MO)

Market Cap: $112.9 billion

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Why Are We Fans of MO?

  1. Unique products and pricing power lead to a best-in-class gross margin of 70.7%
  2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 54.6%
  3. Strong free cash flow margin of 43.3% enables it to reinvest or return capital consistently

At $67.21 per share, Altria trades at 12.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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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