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.
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:
Mondelez (MDLZ)
Market Cap: $73.71 billion
Founded as Nabisco in 1903, Mondelez (NASDAQ:MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Does MDLZ Worry Us?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5.2 percentage points
- Capital intensity has ramped up over the last year as its free cash flow margin decreased by 4.2 percentage points
Mondelez is trading at $57.08 per share, or 18.6x forward P/E. If you’re considering MDLZ for your portfolio, see our FREE research report to learn more.
Pfizer (PFE)
Market Cap: $145 billion
With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.
Why Are We Cautious About PFE?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Free cash flow margin dropped by 26.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $25.47 per share, Pfizer trades at 8.2x forward P/E. Read our free research report to see why you should think twice about including PFE in your portfolio.
One Large-Cap Stock to Watch:
Seagate Technology (STX)
Market Cap: $61.5 billion
The developer of the original 5.25inch hard disk drive, Seagate (NASDAQ:STX) is a leading producer of data storage solutions, including hard drives and Solid State Drives (SSDs) used in PCs and data centers.
Why Are We Fans of STX?
- Annual revenue growth of 18.5% over the past two years was outstanding, reflecting market share gains this cycle
- Sales outlook for the upcoming 12 months calls for 20% growth, an acceleration from its two-year trend
- Efficiency rose over the last five years as its Operating margin increased by 6.9 percentage points
Seagate Technology’s stock price of $288 implies a valuation ratio of 23.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at 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-small-cap company Exlservice (+354% 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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