Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
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. 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:
CSX (CSX)
Market Cap: $62.32 billion
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.
Why Do We Steer Clear of CSX?
- Flat unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 21.5 percentage points
At $33.48 per share, CSX trades at 18.6x forward P/E. If you’re considering CSX for your portfolio, see our FREE research report to learn more.
Hartford (HIG)
Market Cap: $36.95 billion
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE: HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Why Is HIG Not Exciting?
- Large revenue base constrains its growth potential, as seen in its unexciting 6.2% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
- Estimated sales decline of 15% for the next 12 months implies a challenging demand environment
- Annual book value per share growth of 5.4% over the last five years lagged behind its insurance peers as its large balance sheet made it difficult to generate incremental capital growth
Hartford’s stock price of $131.41 implies a valuation ratio of 2.1x forward P/B. Check out our free in-depth research report to learn more about why HIG doesn’t pass our bar.
One Large-Cap Stock to Buy:
Copart (CPRT)
Market Cap: $43.96 billion
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Should You Buy CPRT?
- Annual revenue growth of 16.1% over the last five years was superb and indicates its market share increased during this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 20% annually, topping its revenue gains
- Strong free cash flow margin of 23.3% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Copart is trading at $45.50 per share, or 26.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 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 Comfort Systems (+782% 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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