1 Large-Cap Stock to Research Further and 2 We Find Risky

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 that still has big upside potential and two whose existing offerings may be tapped out.

Two Large-Cap Stocks to Sell:

Northrop Grumman (NOC)

Market Cap: $85.05 billion

Responsible for the development of the first stealth bomber, Northrop Grumman (NYSE:NOC) specializes in providing aerospace, defense, and security solutions for various industry applications.

Why Should You Sell NOC?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Efficiency has decreased over the last five years as its operating margin fell by 5.6 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

At $593.11 per share, Northrop Grumman trades at 20.9x forward P/E. If you’re considering NOC for your portfolio, see our FREE research report to learn more.

M&T Bank (MTB)

Market Cap: $30.99 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?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.3% annually over the last two years
2. Estimated net interest income growth of 5.5% for the next 12 months implies demand will slow from its five-year trend
3. Net interest margin dropped by 24.3 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market

M&T Bank’s stock price of $197.70 implies a valuation ratio of 1.2x forward P/B. To fully understand why you should be careful with MTB, check out our full research report (it’s free).

One Large-Cap Stock to Watch:

Verisk (VRSK)

Market Cap: $34.76 billion

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Do We Watch VRSK?

1. Average constant currency growth of 7.4% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Strong free cash flow margin of 30.5% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
3. Improving returns on capital reflect management’s ability to monetize investments

Verisk is trading at $250.39 per share, or 33.5x 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

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum 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-micro-cap company Kadant (+351% 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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