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 is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. Keeping that in mind, here is one large-cap stock with attractive long-term potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
NXP Semiconductors (NXPI)
Market Cap: $54.04 billion
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Do We Think Twice About NXPI?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 4.1% annually over the last two years
- Anticipated sales growth of 5.3% for the next year implies demand will be shaky
- 8.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $214.78 per share, NXP Semiconductors trades at 16.7x forward P/E. Check out our free in-depth research report to learn more about why NXPI doesn’t pass our bar.
Lennar (LEN)
Market Cap: $31.83 billion
One of the largest homebuilders in America, Lennar (NYSE: LEN) is known for constructing affordable, move-up, and retirement homes across a range of markets and communities.
Why Should You Dump LEN?
- Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 19.2% declines over the past two years
- Free cash flow margin shrank by 11.9 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Lennar is trading at $125.83 per share, or 14.8x forward P/E. To fully understand why you should be careful with LEN, check out our full research report (it’s free for active Edge members).
One Large-Cap Stock to Watch:
Veeva Systems (VEEV)
Market Cap: $46.51 billion
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Does VEEV Stand Out?
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 26.9%, and its profits increased over the last year as it scaled
- VEEV is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Veeva Systems’s stock price of $284.68 implies a valuation ratio of 14.4x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
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 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
