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 whose competitive advantages creates flywheel effects and two whose existing offerings may be tapped out.

Two Large-Cap Stocks to Sell:

Estée Lauder (EL)

Market Cap: $37.04 billion

Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.

Why Are We Hesitant About EL?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
3. Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable

Estée Lauder’s stock price of $102.85 implies a valuation ratio of 45.2x forward P/E. To fully understand why you should be careful with EL, check out our full research report (it’s free for active Edge members).

United Airlines (UAL)

Market Cap: $33.83 billion

Founded in 1926, United Airlines Holdings (NASDAQ: UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.

Why Should You Dump UAL?

1. Sluggish trends in its revenue passenger miles suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Operating margin is anticipated to remain the same over the next year
3. Low free cash flow margin of 3.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $104.93 per share, United Airlines trades at 8.6x forward P/E. Check out our free in-depth research report to learn more about why UAL doesn’t pass our bar.

One Large-Cap Stock to Buy:

Monolithic Power Systems (MPWR)

Market Cap: $47.12 billion

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Why Are We Bullish on MPWR?

1. Market share has increased this cycle as its 27.9% annual revenue growth over the last five years was exceptional
2. Earnings per share grew by 29.1% annually over the last five years, massively outpacing its peers
3. Industry-leading 45.5% return on capital demonstrates management’s skill in finding high-return investments

Monolithic Power Systems is trading at $991.27 per share, or 48.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 Growth Stocks for this month. 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

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.