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.

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. That said, here are two large-cap stocks whose competitive advantages create flywheel effects and one that could be stalling.

One Large-Cap Stock to Sell:

Lowe's (LOW)

Market Cap: $122.8 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 Do We Think Twice About LOW?

1. Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 33.3%

Lowe’s stock price of $219.14 implies a valuation ratio of 17.5x forward P/E. Dive into our free research report to see why there are better opportunities than LOW.

Two Large-Cap Stocks to Watch:

Colgate-Palmolive (CL)

Market Cap: $70.38 billion

Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE: CL) is a consumer products company that focuses on personal, household, and pet products.

Why Does CL Stand Out?

1. Economies of scale give it negotiating power with retailers and suppliers as well as fixed cost leverage when sales grow
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities

At $87.21 per share, Colgate-Palmolive trades at 23.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Gilead Sciences (GILD)

Market Cap: $134.6 billion

From its groundbreaking work in developing the first single-tablet regimens for HIV treatment, Gilead Sciences (NASDAQ: GILD) develops and markets innovative medicines for life-threatening diseases including HIV, viral hepatitis, COVID-19, and cancer.

Why Are We Fans of GILD?

1. $28.74 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
2. Adjusted operating margin improvement of 17.8 percentage points over the last five years demonstrates its ability to scale efficiently
3. Strong free cash flow margin of 33.2% enables it to reinvest or return capital consistently

Gilead Sciences is trading at $108.22 per share, or 13.2x 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

Trump’s April 2024 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 5 Strong Momentum Stocks for this week. 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-micro-cap company Kadant (+351% 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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