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. 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:
Truist Financial (TFC)
Market Cap: $61.36 billion
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE:TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Are We Bearish on TFC?
- The company has faced growth challenges as its 1.9% annual net interest income increases over the last five years fell short of other banking companies
- Projected net interest income growth of 1.7% for the next 12 months suggests sluggish demand
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
At $50.80 per share, Truist Financial trades at 1x forward P/B. If you’re considering TFC for your portfolio, see our FREE research report to learn more.
Two Large-Cap Stocks to Watch:
TransDigm (TDG)
Market Cap: $65.25 billion
Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation.
Why Will TDG Beat the Market?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.3% over the past two years
- Share buybacks catapulted its annual earnings per share growth to 29.9%, which outperformed its revenue gains over the last five years
- TDG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
TransDigm is trading at $1,188 per share, or 26.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Elevance Health (ELV)
Market Cap: $85.94 billion
Formerly known as Anthem until its 2022 rebranding, Elevance Health (NYSE:ELV) is one of America's largest health insurers, serving approximately 47 million medical members through its network-based managed care plans.
Why Could ELV Be a Winner?
- Dominant market position is represented by its $198.7 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Earnings per share grew by 7.2% annually over the last five years, above the peer group average
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Elevance Health’s stock price of $396.35 implies a valuation ratio of 14.7x forward P/E. Is now the right time to buy? Find out 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.