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 whose competitive advantages create flywheel effects and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Workday (WDAY)
Market Cap: $46.25 billion
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ:WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Are We Cautious About WDAY?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 13.6% over the last two years was below our standards for the software sector
- Estimated sales growth of 10.1% for the next 12 months implies demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Workday is trading at $192.03 per share, or 4.3x forward price-to-sales. If you’re considering WDAY for your portfolio, see our FREE research report to learn more.
CBRE (CBRE)
Market Cap: $41.47 billion
Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.
Why Do We Avoid CBRE?
- 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 11.8% for the last five years
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $143.13 per share, CBRE trades at 17.3x forward P/E. Read our free research report to see why you should think twice about including CBRE in your portfolio.
One Large-Cap Stock to Watch:
Jabil (JBL)
Market Cap: $31.82 billion
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE:JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Are We Positive on JBL?
- Massive revenue base of $33.59 billion makes it a well-known name that influences purchasing decisions
- Share buybacks catapulted its annual earnings per share growth to 18.4%, which outperformed its revenue gains over the last five years
- ROIC punches in at 34.7%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
Jabil’s stock price of $304.39 implies a valuation ratio of 19x 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 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.