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 is precisely where StockStory comes in - our job is to find you high-quality companies that can win regardless of the conditions. Keeping that in mind, here is one large-cap stock that still has big upside potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Texas Instruments (TXN)
Market Cap: $167.9 billion
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors.
Why Are We Hesitant About TXN?
Customers postponed purchases of its products and services this cycle as its revenue declined by 11.6% annually over the last two years
Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 5.8 percentage points
Free cash flow margin dropped by 28.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Should You Dump CHTR?
Demand for its offerings was relatively low as its number of internet subscribers has underwhelmed
Sales are projected to be flat over the next 12 months and imply weak demand
Underwhelming 9.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.
Why Are We Backing TTD?
Billings growth has averaged 27.1% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
Healthy operating margin of 17.5% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
The Trump trade may have passed, but rates are still dropping and inflation is still cooling. Opportunities are ripe for those ready to act - and we’re here to help you pick them.
Get started by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
Join thousands of traders who make more informed decisions with our premium features.
Real-time quotes, advanced visualizations, backtesting, and much more.