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3 Large-Cap Stocks with Questionable Fundamentals
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 three large-cap stocks whose momentum may slow and a few alternatives you should consider instead.
Comcast (CMCSA)
Market Cap: $108.9 billion
Formerly known as American Cable Systems, Comcast (NASDAQ:CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Is CMCSA Risky?
- Performance surrounding its domestic broadband customers has lagged its peers
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.1 percentage points
- Returns on capital are increasing as management makes relatively better investment decisions
Comcast’s stock price of $29.90 implies a valuation ratio of 7.5x forward P/E. Check out our free in-depth research report to learn more about why CMCSA doesn’t pass our bar.
AMETEK (AME)
Market Cap: $47.26 billion
Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.
Why Do We Think Twice About AME?
- Sales trends were unexciting over the last two years as its 5.1% annual growth was below the typical industrials company
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
AMETEK is trading at $204.97 per share, or 26.2x forward P/E. To fully understand why you should be careful with AME, check out our full research report (it’s free for active Edge members).
Corning (GLW)
Market Cap: $75.07 billion
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Are We Cautious About GLW?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.7% over the last two years was below our standards for the industrials sector
- 4.4 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
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
At $87.56 per share, Corning trades at 29.8x forward P/E. Read our free research report to see why you should think twice about including GLW in your portfolio.
Stocks We Like More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-micro-cap company Tecnoglass (+1,754% 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.