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. Keeping that in mind, here is one large-cap stock that still has big upside potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Texas Instruments (TXN)
Market Cap: $170.9 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?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.3% annually over the last two years
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 8.4 percentage points
- Free cash flow margin shrank by 32.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Texas Instruments’s stock price of $187.54 implies a valuation ratio of 32.6x forward P/E. Dive into our free research report to see why there are better opportunities than TXN.
Anheuser-Busch (BUD)
Market Cap: $122.9 billion
Born out of a complicated web of mergers and acquisitions, Anheuser-Busch InBev (NYSE: BUD) boasts a powerhouse beer portfolio of Budweiser, Stella Artois, Corona, and local favorites around the world.
Why Is BUD Not Exciting?
- Annual sales growth of 2.1% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
Anheuser-Busch is trading at $70.81 per share, or 8.4x forward EV-to-EBITDA. If you’re considering BUD for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Watch:
CrowdStrike (CRWD)
Market Cap: $121.7 billion
Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ: CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.
Why Should CRWD Be on Your Watchlist?
- Ability to secure long-term commitments with customers is evident in its 26.1% ARR growth over the last year
- Projected revenue growth of 22% for the next 12 months suggests its momentum from the last three years will persist
- Strong free cash flow margin of 24.7% enables it to reinvest or return capital consistently
At $457.09 per share, CrowdStrike trades at 24.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 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.
