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.
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 is one large-cap stock with attractive long-term potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Micron (MU)
Market Cap: $104.3 billion
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE:MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Why Is MU Not Exciting?
- Gross margin of 21.8% reflects its high production costs
- Subpar operating margin of 4.1% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $93.18 per share, Micron trades at 10.7x forward P/E. Read our free research report to see why you should think twice about including MU in your portfolio.
Delta (DAL)
Market Cap: $31.29 billion
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Are We Out on DAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- Forecasted revenue decline of 1.2% for the upcoming 12 months implies demand will fall off a cliff
- Push for growth has led to negative returns on capital, signaling value destruction
Delta is trading at $47.80 per share, or 7.8x forward P/E. Dive into our free research report to see why there are better opportunities than DAL.
One Large-Cap Stock to Buy:
TransDigm (TDG)
Market Cap: $80.4 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 Is TDG a Top Pick?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 14.9% over the past two years
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 30.8% outpaced its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
TransDigm’s stock price of $1,432 implies a valuation ratio of 35.7x 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
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.