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.
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. That said, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose existing offerings may be tapped out.
Two Large-Cap Stocks to Sell:
Deere (DE)
Market Cap: $139.4 billion
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE:DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Why Do We Steer Clear of DE?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 14.5% annually over the last two years
- Waning returns on capital imply its previous profit engines are losing steam
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $514.67 per share, Deere trades at 30.9x forward P/E. Check out our free in-depth research report to learn more about why DE doesn’t pass our bar.
Keysight (KEYS)
Market Cap: $36.8 billion
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Why Is KEYS Not Exciting?
- New orders were hard to come by as its average backlog growth of 1.1% over the past two years underwhelmed
- Earnings per share fell by 7.3% annually over the last two years while its revenue was flat, showing each sale was less profitable
- Eroding returns on capital suggest its historical profit centers are aging
Keysight’s stock price of $213.29 implies a valuation ratio of 26.5x forward P/E. To fully understand why you should be careful with KEYS, check out our full research report (it’s free).
One Large-Cap Stock to Watch:
Qualcomm (QCOM)
Market Cap: $169.5 billion
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Could QCOM Be a Winner?
- Market share has increased this cycle as its 15.3% annual revenue growth over the last five years was exceptional
- Strong free cash flow margin of 28.9% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
- ROIC punches in at 47%, illustrating management’s expertise in identifying profitable investments
Qualcomm is trading at $159.43 per share, or 13.5x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 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.