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1 Large-Cap Stock with Exciting Potential and 2 to Approach with Caution

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Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.

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 whose existing offerings may be tapped out.

Two Large-Cap Stocks to Sell:

Marriott (MAR)

Market Cap: $64.27 billion

Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.

Why Is MAR Not Exciting?

  1. Weak revenue per room over the past two years indicates challenges in maintaining pricing power and occupancy rates
  2. Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend
  3. Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.2% annually

At $222.58 per share, Marriott trades at 21.8x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than MAR.

CBRE (CBRE)

Market Cap: $35.85 billion

Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.

Why Do We Avoid CBRE?

  1. Sizable revenue base leads to growth challenges as its 7.7% annual revenue increases over the last two years fell short of other consumer discretionary companies
  2. Operating margin of 3.7% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
  3. Poor free cash flow margin of 2.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

CBRE is trading at $115.75 per share, or 20.2x forward price-to-earnings. Read our free research report to see why you should think twice about including CBRE in your portfolio.

One Large-Cap Stock to Buy:

Monster (MNST)

Market Cap: $56.69 billion

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Are We Backing MNST?

  1. Healthy operating margin of 27% shows it’s a well-run company with efficient processes
  2. MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Monster’s stock price of $57.74 implies a valuation ratio of 31.9x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

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