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 dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. Keeping that in mind, here are two large-cap stocks whose competitive advantages create flywheel effects and one whose existing offerings may be tapped out.
One Large-Cap Stock to Sell:
eBay (EBAY)
Market Cap: $46.5 billion
Originally known as the first online auction site, eBay (NASDAQ: EBAY) is one of the world’s largest online marketplaces.
Why Is EBAY Not Exciting?
- Competition may be pulling attention away from its platform as its 1.3% average growth in active buyers was choppy
- Projected sales growth of 4.8% for the next 12 months suggests sluggish demand
- Costs have risen faster than its revenue over the last few years, causing its EBITDA margin to decline by 3.6 percentage points
eBay’s stock price of $101.08 implies a valuation ratio of 12.9x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EBAY.
Two Large-Cap Stocks to Watch:
Cloudflare (NET)
Market Cap: $74.61 billion
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE: NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Why Will NET Beat the Market?
- Billings growth has averaged 33% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Expected revenue growth of 28.8% for the next year suggests its market share will rise
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Cloudflare is trading at $211.85 per share, or 26.2x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Nasdaq (NDAQ)
Market Cap: $51.62 billion
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Does NDAQ Catch Our Eye?
- Impressive 15% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share have outperformed the peer group average over the last two years, increasing by 14.8% annually
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $91.00 per share, Nasdaq trades at 22.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
