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 that still has big upside potential and two whose existing offerings may be tapped out.
Two Large-Cap Stocks to Sell:
Zoom (ZM)
Market Cap: $31.93 billion
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ: ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Do We Think ZM Will Underperform?
- Products, pricing, or go-to-market strategy may need some adjustments as its 4% average billings growth over the last year was weak
- Platform has low switching costs as its net revenue retention rate of 98% demonstrates high turnover
- Projected sales growth of 4.2% for the next 12 months suggests sluggish demand
At $107.18 per share, Zoom trades at 6.3x forward price-to-sales. Check out our free in-depth research report to learn more about why ZM doesn’t pass our bar.
Northrop Grumman (NOC)
Market Cap: $78.44 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 Are We Out on NOC?
- The company has faced growth challenges as its 2.6% annual revenue increases over the last five years fell short of other industrials companies
- Anticipated sales growth of 5.4% for the next year implies demand will be shaky
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 3.1% annually
Northrop Grumman is trading at $551.90 per share, or 19.8x forward P/E. Dive into our free research report to see why there are better opportunities than NOC.
One Large-Cap Stock to Watch:
Keurig Dr Pepper (KDP)
Market Cap: $38.8 billion
Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.
Why Does KDP Stand Out?
- Products are seeing elevated demand as its unit sales averaged 4.8% growth over the past two years
- Scale advantages are evident in its $16.94 billion revenue base, which provides operating leverage when demand is strong
Keurig Dr Pepper’s stock price of $28.52 implies a valuation ratio of 12x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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.
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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.
