Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
This is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one large-cap stock with attractive long-term potential and two that could be stalling.
Two Large-Cap Stocks to Sell:
General Dynamics (GD)
Market Cap: $81.7 billion
Creator of the famous M1 Abrahms tank, General Dynamics (NYSE: GD) develops aerospace, marine systems, combat systems, and information technology products.
Why Is GD Not Exciting?
- Sales pipeline suggests its future revenue growth likely won’t meet our standards as its backlog hasn’t budged over the past two years
- Estimated sales growth of 3.2% for the next 12 months implies demand will slow from its two-year trend
- Earnings per share lagged its peers over the last five years as they only grew by 4.2% annually
General Dynamics’s stock price of $305.15 implies a valuation ratio of 20.3x forward P/E. Read our free research report to see why you should think twice about including GD in your portfolio.
Allstate (ALL)
Market Cap: $51.96 billion
Born from a Sears, Roebuck & Co. initiative during the Great Depression with its famous "You're in good hands" slogan, Allstate (NYSE: ALL) is one of America's largest personal property and casualty insurers, offering protection for autos, homes, and personal property.
Why Do We Think Twice About ALL?
- Day-to-day expenses have swelled relative to revenue over the last four years as its combined ratio increased by 10.1 percentage points
- Sizable asset base leads to capital growth challenges as its 1.4% annual book value per share increases over the last five years fell short of other insurance companies
- Below-average return on equity indicates management struggled to find compelling investment opportunities
Allstate is trading at $196 per share, or 2.3x forward P/B. Dive into our free research report to see why there are better opportunities than ALL.
One Large-Cap Stock to Buy:
Sea (SE)
Market Cap: $89.47 billion
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Why Are We Bullish on SE?
- Has the opportunity to boost monetization through new features and premium offerings as its paying users have grown by 10.2% annually over the last two years
- Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 11.7% annually
- Free cash flow margin jumped by 27.3 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $151.50 per share, Sea trades at 40x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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
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