Megacap stocks dominate their sectors and their actions influence economies worldwide. The flip side though is that their sheer size means they have less room for explosive growth as scale works against them.
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 industry titan with attractive long-term potential and two that could be stalling.
Two Mega-Cap Stocks to Sell:
JPMorgan Chase (JPM)
Market Cap: $840 billion
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE: JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Does JPM Give Us Pause?
- The company has faced growth challenges as its 7.2% annual revenue increases over the last two years fell short of other banking companies
- Inferior net interest margin of 2.5% means it must compensate for lower profitability through increased loan originations
- Efficiency ratio is expected to worsen by 1.9 percentage points over the next year
JPMorgan Chase’s stock price of $332.05 implies a valuation ratio of 2.4x forward P/B. Read our free research report to see why you should think twice about including JPM in your portfolio.
ExxonMobil (XOM)
Market Cap: $607.6 billion
One of the successor companies to John D. Rockefeller's Standard Oil monopoly that was broken up in 1911, ExxonMobil (NYSE: XOM) explores for and produces crude oil and natural gas, refines and sells petroleum products, and manufactures petrochemicals.
Why Is XOM Not Exciting?
- Gross margin of 44.1% reflects its high production costs and unfavorable asset base
- EBITDA margin didn’t move over the last five years, showing it couldn’t increase its efficiency
At $138.51 per share, ExxonMobil trades at 10.7x forward P/E. If you’re considering XOM for your portfolio, see our FREE research report to learn more.
One Mega-Cap Stock to Buy:
GE Aerospace (GE)
Market Cap: $347.2 billion
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Is GE a Top Pick?
- Annual revenue growth of 16.7% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Robust free cash flow margin of 17.2% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute
GE Aerospace is trading at $355.67 per share, or 46.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
