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.
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 whose competitive advantages creates flywheel effects and two that could be stalling.
Two Large-Cap Stocks to Sell:
Nike (NKE)
Market Cap: $65.2 billion
Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Why Should You Dump NKE?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Free cash flow margin is anticipated to expand by 1.6 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Nike is trading at $43.94 per share, or 27x forward P/E. If you’re considering NKE for your portfolio, see our FREE research report to learn more.
Truist Financial (TFC)
Market Cap: $59.12 billion
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Should You Sell TFC?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 4.2% over the last five years was below our standards for the banking sector
- Forecasted net interest income decline of 11.3% for the upcoming 12 months implies demand will fall off a cliff
- Earnings per share were flat over the last five years and fell short of the peer group average
Truist Financial’s stock price of $47.62 implies a valuation ratio of 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than TFC.
One Large-Cap Stock to Buy:
Texas Pacific Land (TPL)
Market Cap: $30.95 billion
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE: TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Why Should You Buy TPL?
- Annual revenue growth of 26.2% over the last ten years was superb and indicates its market share increased during this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 95%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $449.60 per share, Texas Pacific Land trades at 33.2x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
