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 dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. 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:

Caterpillar (CAT)

Market Cap: $193.8 billion

With its iconic yellow machinery working on construction sites, Caterpillar (NYSE: CAT) manufactures construction equipment like bulldozers, excavators, and parts and maintenance services.

Why Does CAT Fall Short?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Estimated sales growth of 4.8% for the next 12 months is soft and implies weaker demand
3. Earnings per share lagged its peers over the last two years as they only grew by 2.7% annually

Caterpillar is trading at $413.63 per share, or 20.8x forward P/E. Dive into our free research report to see why there are better opportunities than CAT.

Agilent (A)

Market Cap: $34.17 billion

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE: A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Why Does A Give Us Pause?

1. Annual sales declines of 3% for the past two years show its products and services struggled to connect with the market during this cycle
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. Free cash flow margin shrank by 3.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Agilent’s stock price of $120.60 implies a valuation ratio of 20.7x forward P/E. Read our free research report to see why you should think twice about including A in your portfolio.

One Large-Cap Stock to Watch:

Travelers (TRV)

Market Cap: $60.63 billion

Tracing its roots back to 1853 when it insured travelers against accidents on steamboats and railroads, Travelers (NYSE: TRV) provides a wide range of commercial and personal property and casualty insurance products to businesses, government units, associations, and individuals.

Why Are We Fans of TRV?

1. 10.3% annualized net premiums earned expansion over the last two years exceeded the sector average as its policies appealed to customers
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 52.8% over the last two years outstripped its revenue performance
3. Capital strength is on track to rise over the next 12 months as its 24.2% projected book value per share growth implies profitability will accelerate from its two-year trend

At $267.67 per share, Travelers trades at 2x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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