Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
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 are two large-cap stocks whose competitive advantages create flywheel effects and one whose momentum may slow.
One Large-Cap Stock to Sell:
Lockheed Martin (LMT)
Market Cap: $123.9 billion
Headquartered in Maryland, Famous for the F-35 aircraft, Lockheed Martin (NYSE: LMT) specializes in defense, space, homeland security, and information technology products.
Why Is LMT Risky?
- The company has faced growth challenges as its 2.6% annual revenue increases over the last five years fell short of other industrials companies
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 3.7% annually while its revenue grew
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Lockheed Martin is trading at $537.50 per share, or 17.4x forward P/E. Dive into our free research report to see why there are better opportunities than LMT.
Two Large-Cap Stocks to Watch:
Colgate-Palmolive (CL)
Market Cap: $73.35 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 Is CL on Our Radar?
- Customer loyalty and massive revenue base of $20.8 billion makes it a household name that influences purchasing decisions
- Products command premium prices and result in a best-in-class gross margin of 60.4%
- Robust free cash flow margin of 17.8% gives it many options for capital deployment
Colgate-Palmolive’s stock price of $92.00 implies a valuation ratio of 24x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Cintas (CTAS)
Market Cap: $69.24 billion
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Is CTAS a Good Business?
- Market share has increased this cycle as its 9.8% annual revenue growth over the last five years was exceptional
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 16.4% enables it to reinvest or return capital consistently
At $173.02 per share, Cintas trades at 32.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
