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 with attractive long-term potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
General Mills (GIS)
Market Cap: $30.19 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?
- Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Forecasted revenue decline of 4.3% for the upcoming 12 months implies demand will fall off a cliff
At $55.02 per share, General Mills trades at 12.9x forward P/E. Dive into our free research report to see why there are better opportunities than GIS.
Northrop Grumman (NOC)
Market Cap: $68.1 billion
Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE: NOC) specializes in providing aerospace, defense, and security solutions for various industry applications.
Why Do We Pass on NOC?
- 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
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Northrop Grumman’s stock price of $471.12 implies a valuation ratio of 16.5x forward P/E. Read our free research report to see why you should think twice about including NOC in your portfolio.
One Large-Cap Stock to Buy:
MercadoLibre (MELI)
Market Cap: $131 billion
Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
Why Is MELI a Top Pick?
- Unique Active Buyers are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Platform’s growing usage and its ability to increase user spending by 16.9% annually showcases its high switching costs
- Robust free cash flow margin of 30.2% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
MercadoLibre is trading at $2,578 per share, or 29.9x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
