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.
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 that could be stalling.
Two Large-Cap Stocks to Sell:
Regeneron (REGN)
Market Cap: $67.46 billion
Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ: REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.
Why Do We Think Twice About REGN?
- Annual sales growth of 6.7% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 20.4 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $664.00 per share, Regeneron trades at 13.9x forward P/E. To fully understand why you should be careful with REGN, check out our full research report (it’s free).
Centene (CNC)
Market Cap: $33.72 billion
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Does CNC Fall Short?
- Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 15.2% annually while its revenue grew
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Centene is trading at $68.23 per share, or 19.3x forward P/E. If you’re considering CNC for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Watch:
Boston Scientific (BSX)
Market Cap: $66.37 billion
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Do We Like BSX?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 15.7% over the past two years
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 24.2% outpaced its revenue gains
- Free cash flow margin jumped by 9.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Boston Scientific’s stock price of $44.75 implies a valuation ratio of 13.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive 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.
