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.
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. Keeping that in mind, here is one large-cap stock whose competitive advantages creates flywheel effects and two that could be stalling.
Two Large-Cap Stocks to Sell:
Rockwell Automation (ROK)
Market Cap: $39.28 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 Are We Out on ROK?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Waning returns on capital imply its previous profit engines are losing steam
Rockwell Automation is trading at $349.60 per share, or 30.8x forward P/E. Dive into our free research report to see why there are better opportunities than ROK.
Sherwin-Williams (SHW)
Market Cap: $86.18 billion
Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.
Why Are We Cautious About SHW?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales growth of 2.4% for the next 12 months suggests sluggish demand
- 7.6 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 $346.62 per share, Sherwin-Williams trades at 27.6x forward P/E. Read our free research report to see why you should think twice about including SHW in your portfolio.
One Large-Cap Stock to Watch:
Accenture (ACN)
Market Cap: $152.8 billion
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Are We Fans of ACN?
- Impressive 9.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Enormous revenue base of $69.67 billion provides significant distribution advantages
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Accenture’s stock price of $245.31 implies a valuation ratio of 17.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-small-cap company Exlservice (+354% 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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