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 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 are two large-cap stocks whose competitive advantages create flywheel effects and one that could be stalling.
One Large-Cap Stock to Sell:
Live Nation (LYV)
Market Cap: $32.58 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 Does LYV Give Us Pause?
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Sluggish trends in its events suggest customers aren’t adopting its solutions as quickly as the company hoped
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Poor expense management has led to an operating margin of 4.2% that is below the industry average
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Underwhelming 8.8% return on capital reflects management’s difficulties in finding profitable growth opportunities
Live Nation’s stock price of $140.12 implies a valuation ratio of 44.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why LYV doesn’t pass our bar .
Two Large-Cap Stocks to Buy:
ServiceNow (NOW)
Market Cap: $189.7 billion
Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.
Why Is NOW a Top Pick?
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Customers view its software as mission-critical to their operations as its ARR has averaged 22.7% growth over the last year
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Healthy operating margin of 12.4% shows it’s a well-run company with efficient processes, and its profits increased over the last year as it scaled
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Robust free cash flow margin of 31.3% gives it many options for capital deployment
At $921 per share, ServiceNow trades at 14.8x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free .
Humana (HUM)
Market Cap: $31.54 billion
Founded in 1961 as a nursing home company, Humana (NYSE:HUM) today offers health insurance plans that cover medical, dental, and vision needs.
Why Do We Love HUM?
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13.1% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
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Unparalleled scale of $117.5 billion in revenue enables it to spread administrative costs across a larger membership base
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ROIC punches in at 37.1%, illustrating management’s expertise in identifying profitable investments
Humana is trading at $251.01 per share, or 15.5x forward price-to-earnings. Is now a good time to buy? See for yourself in our in-depth research report, it’s free .
Stocks We Like Even More
With rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle.
Put yourself in the driver’s seat by checking out our Top 9 Market-Beating Stocks . This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free .
