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.
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 that still has big upside potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Old Dominion Freight Line (ODFL)
Market Cap: $41.48 billion
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Why Are We Cautious About ODFL?
- Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
- Earnings per share have dipped by 5.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Old Dominion Freight Line is trading at $198.96 per share, or 32x forward P/E. Check out our free in-depth research report to learn more about why ODFL doesn’t pass our bar.
Illumina (ILMN)
Market Cap: $34.38 billion
Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ:ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions.
Why Does ILMN Worry Us?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 3% annually
- Negative returns on capital show that some of its growth strategies have backfired
Illumina’s stock price of $228.76 implies a valuation ratio of 39.4x forward P/E. To fully understand why you should be careful with ILMN, check out our full research report (it’s free).
One Large-Cap Stock to Watch:
Nasdaq (NDAQ)
Market Cap: $55.53 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 Is NDAQ on Our Radar?
- 13.8% annual revenue growth over the last two years surpassed the sector average as its products resonated with customers
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 18.6% exceeded its revenue gains over the last two years
- Industry-leading 15.4% return on equity demonstrates management’s skill in finding high-return investments
At $99.74 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.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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.