Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.
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 with attractive long-term potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
onsemi (ON)
Market Cap: $32.12 billion
Spun out of Motorola in 1999 and built through a series of acquisitions, onsemi (NASDAQ: ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.
Why Should You Sell ON?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 10.8% annually over the last two years
- Anticipated sales growth of 12.6% for the next year implies demand will be shaky
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 16.9 percentage points
At $82.80 per share, onsemi trades at 22.2x forward P/E. Read our free research report to see why you should think twice about including ON in your portfolio.
Strategy (MSTR)
Market Cap: $58.93 billion
Once a traditional business intelligence software provider, Strategy (NASDAQ: MSTR) develops AI-powered enterprise analytics software while also functioning as a major corporate holder of Bitcoin cryptocurrency.
Why Do We Think MSTR Will Underperform?
- MicroStrategy’s core analytics software has been eclipsed by its all-in Bitcoin strategy, leaving product innovation and enterprise deals starved for attention
- The company’s debt-financed Bitcoin buying ties shareholder fortunes to crypto swings and interest rates, amplifying downside risk and uncertainty
- On the bright side, its vast Bitcoin treasury gives Executive Chairman Michael Saylor a unique springboard to capture crypto upside and court investors seeking leveraged exposure to digital assets
Strategy’s stock price of $154.55 implies a valuation ratio of 114x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MSTR.
One Large-Cap Stock to Buy:
Monolithic Power Systems (MPWR)
Market Cap: $70.08 billion
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Should You Buy MPWR?
- Impressive 25.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 27.5% annually
- Industry-leading 43.1% return on capital demonstrates management’s skill in finding high-return investments
Monolithic Power Systems is trading at $1,432 per share, or 45.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
