Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one large-cap stock with attractive long-term potential and two whose existing offerings may be tapped out.
Two Large-Cap Stocks to Sell:
General Dynamics (GD)
Market Cap: $92.3 billion
Creator of the famous M1 Abrahms tank, General Dynamics (NYSE: GD) develops aerospace, marine systems, combat systems, and information technology products.
Why Does GD Fall Short?
- Average backlog growth of 3.4% over the past two years was mediocre and suggests fewer customers signed long-term contracts
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 1.8 percentage points
At $342.97 per share, General Dynamics trades at 20.4x forward P/E. Check out our free in-depth research report to learn more about why GD doesn’t pass our bar.
Verizon (VZ)
Market Cap: $168.3 billion
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.
Why Do We Pass on VZ?
- Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy
- Free cash flow margin is expected to remain in place over the coming year
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Verizon’s stock price of $40.02 implies a valuation ratio of 8.5x forward P/E. If you’re considering VZ for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Buy:
Ameriprise Financial (AMP)
Market Cap: $46.2 billion
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Should You Buy AMP?
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Balance sheet strength has increased this cycle as its 35.5% annual tangible book value per share growth over the last two years was exceptional
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Ameriprise Financial is trading at $498.21 per share, or 11.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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