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 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. That said, here are three large-cap stocks whose momentum may slow and a few alternatives you should consider instead.
Warner Bros. Discovery (WBD)
Market Cap: $70.86 billion
Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.
Why Should You Dump WBD?
- Products and services have few die-hard fans as sales have declined by 5.1% annually over the last two years
- Free cash flow margin is expected to remain in place over the coming year
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $28.55 per share, Warner Bros. Discovery trades at 11.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WBD doesn’t pass our bar.
W.W. Grainger (GWW)
Market Cap: $50.82 billion
Founded as a supplier of motors, W.W. Grainger (NYSE: GWW) provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.
Why Is GWW Not Exciting?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Projected sales growth of 4.5% for the next 12 months suggests sluggish demand
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.9% annually
W.W. Grainger’s stock price of $1,064 implies a valuation ratio of 25.1x forward P/E. If you’re considering GWW for your portfolio, see our FREE research report to learn more.
Sherwin-Williams (SHW)
Market Cap: $88.19 billion
Widely known for its success in the paint industry, Sherwin-Williams (NYSE: SHW) is a manufacturer of paints, coatings, and related products.
Why Are We Wary of SHW?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.2% annually
- 2.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Sherwin-Williams is trading at $358.20 per share, or 29.6x forward P/E. Dive into our free research report to see why there are better opportunities than SHW.
Stocks We Like More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
