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3 Large-Cap Stocks We’re Skeptical Of

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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 whose momentum may slow and a few alternatives you should consider instead.

Lowe's (LOW)

Market Cap: $138.5 billion

Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.

Why Does LOW Worry Us?

  1. Products aren't resonating with the market as its revenue declined by 4.2% annually over the last three years
  2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  3. Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 33.4%

Lowe’s stock price of $246.85 implies a valuation ratio of 18.9x forward P/E. To fully understand why you should be careful with LOW, check out our full research report (it’s free for active Edge members).

CSX (CSX)

Market Cap: $67.54 billion

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

Why Do We Pass on CSX?

  1. Disappointing unit sales over the past two years suggest it might have to lower prices to accelerate growth
  2. Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 18.9 percentage points

CSX is trading at $36.43 per share, or 19.7x forward P/E. Dive into our free research report to see why there are better opportunities than CSX.

Hartford (HIG)

Market Cap: $38.21 billion

Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.

Why Are We Wary of HIG?

  1. Net premiums earned only expanded by 6.1% annually over the last five years, trailing its insurance peers as its scale limited incremental business
  2. Projected sales decline of 22.5% for the next 12 months points to a tough demand environment ahead
  3. Annual book value per share growth of 5.8% over the last five years lagged behind its insurance peers as its large balance sheet made it difficult to generate incremental capital growth

At $136.04 per share, Hartford trades at 2.1x forward P/B. If you’re considering HIG for your portfolio, see our FREE research report to learn more.

Stocks We Like More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 Comfort Systems (+782% 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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