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 are three large-cap stocks that may face near-term headwinds and some other investments you should consider instead.
FOX (FOXA)
Market Cap: $30.41 billion
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Is FOXA Risky?
- Sizable revenue base leads to growth challenges as its 5.9% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Projected 11.2 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
At $72.23 per share, FOX trades at 15.9x forward P/E. If you’re considering FOXA for your portfolio, see our FREE research report to learn more.
Verisk (VRSK)
Market Cap: $30.72 billion
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Does VRSK Worry Us?
- Annual revenue growth of 2% over the last five years was below our standards for the business services sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.2% annually
Verisk is trading at $219.51 per share, or 30.1x forward P/E. Dive into our free research report to see why there are better opportunities than VRSK.
M&T Bank (MTB)
Market Cap: $32.23 billion
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Why Are We Hesitant About MTB?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 4.2% annually
- Estimated tangible book value per share growth of 4% for the next 12 months implies profitability will slow from its two-year trend
M&T Bank’s stock price of $211.57 implies a valuation ratio of 1.2x forward P/B. Check out our free in-depth research report to learn more about why MTB doesn’t pass our bar.
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 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
