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 whose competitive advantages creates flywheel effects and two that could be stalling.
Two Large-Cap Stocks to Sell:
Target (TGT)
Market Cap: $44.23 billion
With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.
Why Is TGT Risky?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Widely-available products (and therefore stiff competition) result in an inferior gross margin of 28% that must be offset through higher volumes
- Subpar operating margin of 5.2% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Target’s stock price of $97.36 implies a valuation ratio of 12.7x forward P/E. Read our free research report to see why you should think twice about including TGT in your portfolio.
Live Nation (LYV)
Market Cap: $32.07 billion
Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Why Do We Steer Clear of LYV?
- Demand for its offerings was relatively low as its number of events has underwhelmed
- Poor expense management has led to an operating margin of 4.5% that is below the industry average
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Live Nation is trading at $137.81 per share, or 81.2x forward P/E. If you’re considering LYV for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Watch:
Atlassian (TEAM)
Market Cap: $41.98 billion
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Are We Fans of TEAM?
- Annual revenue growth of 21.4% over the past two years was outstanding, reflecting market share gains
- Software is difficult to replicate at scale and results in a top-tier gross margin of 83.5%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $159.50 per share, Atlassian trades at 6.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our 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 244% over the last five years (as of June 30, 2025).
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-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.
