Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.

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. Keeping that in mind, here is one large-cap stock that still has big upside potential and two whose momentum may slow.

Two Large-Cap Stocks to Sell:

Rockwell Automation (ROK)

Market Cap: $38.88 billion

One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.

Why Should You Dump ROK?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Sales were less profitable over the last two years as its earnings per share fell by 8% annually, worse than its revenue declines
3. Eroding returns on capital suggest its historical profit centers are aging

Rockwell Automation is trading at $344.21 per share, or 34.5x forward P/E. To fully understand why you should be careful with ROK, check out our full research report (it’s free).

Carrier Global (CARR)

Market Cap: $65.49 billion

Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Does CARR Give Us Pause?

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. Free cash flow margin dropped by 5.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Carrier Global’s stock price of $76.77 implies a valuation ratio of 25x forward P/E. Read our free research report to see why you should think twice about including CARR in your portfolio.

One Large-Cap Stock to Buy:

Elevance Health (ELV)

Market Cap: $78.14 billion

Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE: ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.

Why Are We Backing ELV?

1. Massive revenue base of $183.3 billion gives it meaningful leverage when negotiating reimbursement rates
2. Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 11.5% annually
3. ROIC punches in at 28.1%, illustrating management’s expertise in identifying profitable investments

At $347.57 per share, Elevance Health trades at 9.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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 Tecnoglass (+1,754% 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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