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 dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. Keeping that in mind, here is one large-cap stock with attractive long-term potential and two that could be stalling.
Two Large-Cap Stocks to Sell:
PepsiCo (PEP)
Market Cap: $177 billion
With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.
Why Does PEP Fall Short?
- Sizable revenue base leads to growth challenges as its 4.2% annual revenue increases over the last three years fell short of other consumer staples companies
- Falling unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
PepsiCo’s stock price of $129.15 implies a valuation ratio of 15.4x forward P/E. Dive into our free research report to see why there are better opportunities than PEP.
Old Dominion Freight Line (ODFL)
Market Cap: $32.97 billion
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ: ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Why Does ODFL Worry Us?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.9 percentage points
At $156 per share, Old Dominion Freight Line trades at 27.6x forward P/E. Read our free research report to see why you should think twice about including ODFL in your portfolio.
One Large-Cap Stock to Buy:
Quanta (PWR)
Market Cap: $53.42 billion
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Are We Backing PWR?
- Sales pipeline is in good shape as its backlog averaged 23.1% growth over the past two years
- Projected revenue growth of 10.7% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share grew by 22.4% annually over the last two years and trumped its peers
Quanta is trading at $361.95 per share, or 33.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our 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 Kadant (+351% 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
