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.

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 with attractive long-term potential and two that could be stalling.

Two Large-Cap Stocks to Sell:

Cadence Design Systems (CDNS)

Market Cap: $83.21 billion

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Why Are We Hesitant About CDNS?

1. Average billings growth of 14.8% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
2. Operating margin failed to increase over the last year, indicating the company couldn’t optimize its expenses
3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.8 percentage points

Cadence Design Systems’s stock price of $301.08 implies a valuation ratio of 13.7x forward price-to-sales. Check out our free in-depth research report to learn more about why CDNS doesn’t pass our bar.

Marriott (MAR)

Market Cap: $90.55 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 Should You Dump MAR?

1. Revenue per room has underperformed over the past two years, suggesting it may need to develop new facilities
2. Poor expense management has led to an operating margin of 15.4% that is below the industry average
3. Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 5.4 percentage points over the next year

Marriott is trading at $330.30 per share, or 28.6x forward P/E. Dive into our free research report to see why there are better opportunities than MAR.

One Large-Cap Stock to Buy:

Monolithic Power Systems (MPWR)

Market Cap: $56.13 billion

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Why Are We Backing MPWR?

1. Impressive 27% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 28.7% annually, topping its revenue gains
3. ROIC punches in at 43.5%, illustrating management’s expertise in identifying profitable investments

At $1,140 per share, Monolithic Power Systems trades at 53.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.