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1 Large-Cap Stock Worth Investigating and 2 to Think Twice About

EA Cover Image

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. Keeping that in mind, here is one large-cap stock with attractive long-term potential and two whose momentum may slow.

Two Large-Cap Stocks to Sell:

Electronic Arts (EA)

Market Cap: $37.36 billion

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.

Why Is EA Not Exciting?

  1. Sales trends were unexciting over the last three years as its 2.1% annual growth was below the typical consumer internet company
  2. Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
  3. Efficiency has decreased over the last few years as its EBITDA margin fell by 8.1 percentage points

Electronic Arts’s stock price of $150.50 implies a valuation ratio of 14.8x forward EV/EBITDA. Read our free research report to see why you should think twice about including EA in your portfolio.

BD (BDX)

Market Cap: $50.43 billion

With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE: BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.

Why Do We Think Twice About BDX?

  1. Annual sales growth of 4.1% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.5 percentage points
  3. Low returns on capital reflect management’s struggle to allocate funds effectively

BD is trading at $175.97 per share, or 11.8x forward P/E. Check out our free in-depth research report to learn more about why BDX doesn’t pass our bar.

One Large-Cap Stock to Watch:

Roblox (RBLX)

Market Cap: $71.69 billion

Best known for its wide assortment of user-generated content, Roblox (NYSE: RBLX) is an online gaming platform and game creation system.

Why Do We Watch RBLX?

  1. Daily Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
  2. Brand halo makes it a customer acquisition machine that onboards new users at scale without spending much money
  3. Highly efficient business model is illustrated by its impressive 20.5% EBITDA margin

At $105.99 per share, Roblox trades at 62.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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 Tecnoglass (+1,754% 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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