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:
Mondelez (MDLZ)
Market Cap: $79.29 billion
Founded as Nabisco in 1903, Mondelez (NASDAQ: MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Are We Wary of MDLZ?
- Declining unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 8.2 percentage points
- Incremental sales over the last three years were less profitable as its earnings per share were flat while its revenue grew
Mondelez’s stock price of $61.87 implies a valuation ratio of 20.2x forward P/E. Check out our free in-depth research report to learn more about why MDLZ doesn’t pass our bar.
FedEx (FDX)
Market Cap: $86.87 billion
Sporting one of the largest air cargo fleets in the world, FedEx (NYSE: FDX) is a global provider of parcel and cargo delivery services.
Why Do We Steer Clear of FDX?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.2% over the last two years was below our standards for the industrials sector
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.4% for the last five years
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
FedEx is trading at $369.50 per share, or 18.8x forward P/E. To fully understand why you should be careful with FDX, check out our full research report (it’s free).
One Large-Cap Stock to Watch:
Amgen (AMGN)
Market Cap: $197.2 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Are We Fans of AMGN?
- Solid 14.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
- $36.75 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $366.44 per share, Amgen trades at 16.3x 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 9 Market-Beating Stocks. 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.
