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 whose competitive advantages creates flywheel effects and two that could be stalling.
Two Large-Cap Stocks to Sell:
Anheuser-Busch (BUD)
Market Cap: $97.71 billion
Born out of a complicated web of mergers and acquisitions, Anheuser-Busch InBev (NYSE: BUD) boasts a powerhouse beer portfolio of Budweiser, Stella Artois, Corona, and local favorites around the world.
Why Does BUD Worry Us?
- Sizable revenue base leads to growth challenges as its 1.2% annual revenue increases over the last three years fell short of other consumer staples companies
- Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
At $58.80 per share, Anheuser-Busch trades at 10.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including BUD in your portfolio.
Fifth Third Bancorp (FITB)
Market Cap: $30.63 billion
Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ: FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.
Why Are We Cautious About FITB?
- Net interest income trends were unexciting over the last five years as its 3.8% annual growth was below the typical banking firm
- Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
- Annual tangible book value per share declines of 1.5% for the past five years show its capital management struggled during this cycle
Fifth Third Bancorp is trading at $46.35 per share, or 1.6x forward P/B. If you’re considering FITB for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Buy:
Nubank (NU)
Market Cap: $77.27 billion
With nearly 94 million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE: NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Are We Backing NU?
- Impressive 44.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Additional sales over the last two years increased its profitability as the 99.9% annual growth in its earnings per share outpaced its revenue
Nubank’s stock price of $16.06 implies a valuation ratio of 22.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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 183% over the last five years (as of March 31st 2025).
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-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
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