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 is one large-cap stock whose competitive advantages create flywheel effects and two whose existing offerings may be tapped out.
Two Large-Cap Stocks to Sell:
Autodesk (ADSK)
Market Cap: $50.31 billion
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ:ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Why Do We Think Twice About ADSK?
- Revenue increased by 14% annually over the last five years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment
- Free cash flow margin is forecasted to shrink by 4.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $239.89 per share, Autodesk trades at 5.8x forward price-to-sales. Read our free research report to see why you should think twice about including ADSK in your portfolio.
PayPal (PYPL)
Market Cap: $48.34 billion
Originally spun off from eBay in 2015 after being acquired by the auction giant in 2002, PayPal (NASDAQ:PYPL) operates a global digital payments platform that enables consumers and merchants to send, receive, and process payments online and in person.
Why Are We Out on PYPL?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4.9% for the last two years
- Performance over the past two years shows its incremental sales were less profitable, as its 2.3% annual earnings per share growth trailed its revenue gains
PayPal’s stock price of $56.40 implies a valuation ratio of 10.2x forward P/E. To fully understand why you should be careful with PYPL, check out our full research report (it’s free).
One Large-Cap Stock to Buy:
Corning (GLW)
Market Cap: $114.3 billion
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Do We Love GLW?
- Impressive 14.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 30.3% annually over the last two years and trumped its peers
- Free cash flow margin grew by 5.9 percentage points over the last five years, giving the company more chips to play with
Corning is trading at $132.87 per share, or 35.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.