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.
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 whose competitive advantages creates flywheel effects and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Hilton (HLT)
Market Cap: $63.13 billion
Founded in 1919, Hilton Worldwide (NYSE:HLT) is a global hospitality company with a portfolio of hotel brands.
Why Are We Cautious About HLT?
- Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
- Projected sales growth of 7.2% for the next 12 months suggests sluggish demand
- Free cash flow margin is forecasted to shrink by 2.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $269 per share, Hilton trades at 31.9x forward P/E. Read our free research report to see why you should think twice about including HLT in your portfolio.
MetLife (MET)
Market Cap: $55.12 billion
Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE:MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.
Why Are We Out on MET?
- Insurance offerings face significant market challenges this cycle as net premiums earned contracted by 1.9% annually over the last two years
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 13.6% annually
- Policy losses and capital returns have eroded its book value per share this cycle as its book value per share declined by 13% annually over the last five years
MetLife’s stock price of $82.94 implies a valuation ratio of 2.2x forward P/B. Dive into our free research report to see why there are better opportunities than MET.
One Large-Cap Stock to Buy:
Super Micro (SMCI)
Market Cap: $31.56 billion
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ:SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Why Do We Love SMCI?
- Annual revenue growth of 75.6% over the past two years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $21.97 billion makes it a well-known name that influences purchasing decisions
- Free cash flow flipped to positive over the last five years, showing the company is at an important crossroads
Super Micro is trading at $53.77 per share, or 20.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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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