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. That said, here is one large-cap stock with attractive long-term potential and two that could be stalling.
Two Large-Cap Stocks to Sell:
Live Nation (LYV)
Market Cap: $34.23 billion
Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Why Does LYV Fall Short?
- Demand for its offerings was relatively low as its number of events has underwhelmed
- Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability
- Free cash flow margin is forecasted to shrink by 1.9 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
Live Nation is trading at $142 per share, or 63x forward P/E. Dive into our free research report to see why there are better opportunities than LYV.
Boeing (BA)
Market Cap: $155.2 billion
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Do We Think BA Will Underperform?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Boeing’s stock price of $202.85 implies a valuation ratio of 29.2x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why BA doesn’t pass our bar.
One Large-Cap Stock to Watch:
United Rentals (URI)
Market Cap: $47.17 billion
Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
Why Could URI Be a Winner?
- Annual revenue growth of 12.1% over the last two years was superb and indicates its market share increased during this cycle
- Healthy operating margin of 25.6% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $723.56 per share, United Rentals trades at 16.2x forward P/E. Is now the right 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 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
