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 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 momentum may slow.
Two Large-Cap Stocks to Sell:
Twilio (TWLO)
Market Cap: $30 billion
Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE: TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.
Why Does TWLO Give Us Pause?
- Below-average net revenue retention rate of 110% suggests it has some trouble expanding within existing accounts
- Gross margin of 48.7% reflects its high servicing costs
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Twilio’s stock price of $197.51 implies a valuation ratio of 5.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than TWLO.
W.W. Grainger (GWW)
Market Cap: $59.73 billion
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Do We Think Twice About GWW?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.1% over the last two years was below our standards for the industrials sector
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1.3% annually
At $1,257 per share, W.W. Grainger trades at 27.4x forward P/E. If you’re considering GWW for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Watch:
McDonald's (MCD)
Market Cap: $200.7 billion
With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.
Why Do We Like MCD?
- Bold push to open new restaurants demonstrates an ambitious strategy to establish itself in underpenetrated territories
- Asset-lite franchise model is reflected in its superior unit economics and a best-in-class gross margin of 57.1%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
McDonald's is trading at $282.42 per share, or 20.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
