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.
These trade-offs can cause headaches for even the most seasoned professionals, which is why we started StockStory - to help you find high-quality companies that can grow their earnings no matter what. That said, here are three large-cap stocks that may face near-term headwinds and some other investments you should consider instead.
Intel (INTC)
Market Cap: $227.1 billion
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.
Why Is INTC Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.4% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Free cash flow margin dropped by 35.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Intel’s stock price of $45.56 implies a valuation ratio of 97.2x forward P/E. If you’re considering INTC for your portfolio, see our FREE research report to learn more.
United Parcel Service (UPS)
Market Cap: $91.68 billion
Trademarking its recognizable UPS Brown color, UPS (NYSE:UPS) offers package delivery, supply chain management, and freight forwarding services.
Why Should You Sell UPS?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $108.20 per share, United Parcel Service trades at 15.5x forward P/E. Read our free research report to see why you should think twice about including UPS in your portfolio.
Viking (VIK)
Market Cap: $31.92 billion
From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE:VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.
Why Do We Pass on VIK?
- Annual revenue growth of 17.1% over the last two years was below our standards for the consumer discretionary sector
- Subpar operating margin of 21.1% constrains its ability to invest in process improvements or effectively respond to new competitive threats
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Viking is trading at $70.47 per share, or 23.2x forward P/E. Check out our free in-depth research report to learn more about why VIK doesn’t pass our bar.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our 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 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.