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. That said, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
General Mills (GIS)
Market Cap: $34.42 billion
Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.
Why Are We Wary of GIS?
- Sizable revenue base leads to growth challenges as its 2.3% annual revenue increases over the last three years fell short of other consumer staples companies
- Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Projected sales decline of 2.7% for the next 12 months points to a tough demand environment ahead
At $61.88 per share, General Mills trades at 13.6x forward price-to-earnings. If you’re considering GIS for your portfolio, see our FREE research report to learn more.
Nike (NKE)
Market Cap: $109.7 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 Is NKE Risky?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Projected sales decline of 7.2% for the next 12 months points to an even tougher demand environment ahead
- Diminishing returns on capital suggest its earlier profit pools are drying up
Nike is trading at $74.96 per share, or 26.6x forward price-to-earnings. Check out our free in-depth research report to learn more about why NKE doesn’t pass our bar.
One Large-Cap Stock to Watch:
Stryker (SYK)
Market Cap: $139.4 billion
Founded in 1941 as a specialty medical products business, Stryker Corporation today designs and sells a wide range of medical devices, equipment, and technology across areas like orthopedics (bones, joints, ligaments, etc.), surgical equipment, and spine.
Why Is SYK Interesting?
- Average organic revenue growth of 10.9% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- $22.6 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Strong free cash flow margin of 15.3% enables it to reinvest or return capital consistently
Stryker’s stock price of $370.28 implies a valuation ratio of 27.1x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market - and we’re zeroing in on the stocks that could benefit immensely.
Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
