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.
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 are two large-cap stocks whose competitive advantages create flywheel effects and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
Prudential (PRU)
Market Cap: $36.6 billion
Recognized by its iconic Rock of Gibraltar logo symbolizing strength and stability since 1896, Prudential Financial (NYSE: PRU) provides life insurance, annuities, retirement solutions, investment management, and other financial services to individual and institutional customers globally.
Why Do We Pass on PRU?
- Net premiums earned contracted by 2.3% annually over the last five years, showing unfavorable market dynamics this cycle
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 12.2% annually over the last five years
- Debt-to-equity ratio of 1.3× shows the firm has taken on excessive debt, leaving little room for error
Prudential’s stock price of $104.02 implies a valuation ratio of 1.2x forward P/B. Read our free research report to see why you should think twice about including PRU in your portfolio.
Two Large-Cap Stocks to Watch:
Take-Two (TTWO)
Market Cap: $47.53 billion
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.
Why Is TTWO Interesting?
- Solid 15.2% annual revenue growth over the last three years underscores its platform’s appeal to consumers
- Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 33.7%
- Healthy EBITDA margin of 14.3% shows it’s a well-run company with efficient processes
Take-Two is trading at $259.50 per share, or 32.8x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Rocket Companies (RKT)
Market Cap: $50.09 billion
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE: RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Why Does RKT Catch Our Eye?
- Net interest income outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $17.87 per share, Rocket Companies trades at 3.3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 6 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
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.
