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. That said, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose existing offerings may be tapped out.
Two Large-Cap Stocks to Sell:
Thermo Fisher (TMO)
Market Cap: $162.1 billion
With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE: TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.
Why Do We Think Twice About TMO?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 10 percentage points
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $429.33 per share, Thermo Fisher trades at 18.1x forward P/E. To fully understand why you should be careful with TMO, check out our full research report (it’s free).
M&T Bank (MTB)
Market Cap: $32.52 billion
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Why Are We Cautious About MTB?
- Sales were flat over the last two years, indicating it’s failed to expand this cycle
- Estimated net interest income growth of 4.6% for the next 12 months implies demand will slow from its four-year trend
- Estimated tangible book value per share growth of 4.2% for the next 12 months implies profitability will slow from its two-year trend
M&T Bank’s stock price of $202.58 implies a valuation ratio of 1.2x forward P/B. If you’re considering MTB for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Buy:
Robinhood (HOOD)
Market Cap: $83.3 billion
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Is HOOD a Good Business?
- Monetization efforts are paying off as its average revenue per user has grown by 43.1% annually over the last two years
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 64.6% over the last three years outstripped its revenue performance
- Free cash flow margin jumped by 1,103.9 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Robinhood is trading at $94.01 per share, or 42.8x forward EV/EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 183% over the last five years (as of March 31st 2025).
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
