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.

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 are three large-cap stocks whose existing offerings may be tapped out and some other investments you should look into instead.

Starbucks (SBUX)

Market Cap: $96.88 billion

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Are We Out on SBUX?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
2. Estimated sales growth of 3.1% for the next 12 months implies demand will slow from its six-year trend
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 7.1 percentage points

Starbucks is trading at $85.43 per share, or 35.4x forward P/E. Read our free research report to see why you should think twice about including SBUX in your portfolio.

Carnival (CCL)

Market Cap: $33.65 billion

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Should You Sell CCL?

1. Demand for its offerings was relatively low as its number of passenger cruise days has underwhelmed
2. Free cash flow margin is on track to jump by 1.8 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Negative returns on capital show management lost money while trying to expand the business

At $25.90 per share, Carnival trades at 10.9x forward P/E. Check out our free in-depth research report to learn more about why CCL doesn’t pass our bar.

Northrop Grumman (NOC)

Market Cap: $78.06 billion

Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE: NOC) specializes in providing aerospace, defense, and security solutions for various industry applications.

Why Should You Dump NOC?

1. 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
2. Efficiency has decreased over the last five years as its operating margin fell by 5.7 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Northrop Grumman’s stock price of $547.28 implies a valuation ratio of 19.7x forward P/E. To fully understand why you should be careful with NOC, check out our full research report (it’s free for active Edge members).

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 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-micro-cap company Kadant (+351% 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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