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華爾街日報2 Mega-Cap Stocks with Exciting Potential and 1 We Find Risky
Megacap stocks dominate their sectors and their actions influence economies worldwide. The flip side though is that their sheer size means they have less room for explosive growth as scale works against them.
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 two industry titans that still have big upside potential and one whose momentum may slow.
One Mega-Cap Stock to Sell:
Citigroup (C)
Market Cap: $199.1 billion
With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE:C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.
Why Is C Risky?
- Sizable revenue base leads to growth challenges as its 5.9% annual net interest income increases over the last five years fell short of other banking companies
- Estimated net interest income growth of 2.3% for the next 12 months implies demand will slow from its five-year trend
- Net interest margin of 2.4% is well below other banks, signaling its loans aren’t very profitable
Citigroup’s stock price of $111.26 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than C.
Two Mega-Cap Stocks to Watch:
Alphabet (GOOGL)
Market Cap: $3.69 trillion
Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.
Why Is GOOGL a Good Business?
- Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
- The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
- Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.
At $305.51 per share, Alphabet trades at 28.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Costco (COST)
Market Cap: $381.9 billion
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Does COST Catch Our Eye?
- Same-store sales growth averaged 5.9% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Enormous revenue base of $280.4 billion compensates for its low gross margin and provides significant leverage in supplier negotiations
- Industry-leading 34.1% return on capital demonstrates management’s skill in finding high-return investments, and its rising returns show it’s making even more lucrative bets
Costco is trading at $858.82 per share, or 41.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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-micro-cap company Kadant (+351% 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.