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 is one large-cap stock that still has big upside potential and two that could be stalling.

Two Large-Cap Stocks to Sell:

Expedia (EXPE)

Market Cap: $34.65 billion

Originally founded as a part of Microsoft, Expedia (NASDAQ: EXPE) is one of the world’s leading online travel agencies.

Why Does EXPE Worry Us?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 8.3% over the last three years was below our standards for the consumer internet sector
2. Preference for prioritizing user growth over monetization has led to 1.7% annual drops in its average revenue per booking
3. Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend

At $285.52 per share, Expedia trades at 10.2x forward EV/EBITDA. If you’re considering EXPE for your portfolio, see our FREE research report to learn more.

Honeywell (HON)

Market Cap: $126.9 billion

Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ: HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions.

Why Are We Hesitant About HON?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Projected sales decline of 3.3% for the next 12 months points to a tough demand environment ahead
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Honeywell is trading at $197.56 per share, or 19.5x forward P/E. Check out our free in-depth research report to learn more about why HON doesn’t pass our bar.

One Large-Cap Stock to Watch:

Wabtec (WAB)

Market Cap: $36.53 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Does WAB Stand Out?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Robust free cash flow margin of 11.6% gives it many options for capital deployment

Wabtec’s stock price of $213.41 implies a valuation ratio of 21.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).

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-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.