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華爾街日報1 Large-Cap Stock with Impressive Fundamentals and 2 Facing Challenges
Large-cap stocks are known for their staying power and ability to weather market storms better than smaller competitors. However, their sheer size makes it more challenging to maintain high growth rates as they’ve already captured significant portions of their markets.
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. Keeping that in mind, here is one large-cap stock whose competitive advantages creates flywheel effects and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
Fastenal (FAST)
Market Cap: $47.9 billion
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Does FAST Worry Us?
- Annual revenue growth of 4.8% over the last two years was below our standards for the industrials sector
- Incremental sales over the last two years were less profitable as its 3.7% annual earnings per share growth lagged its revenue gains
- Free cash flow margin shrank by 1.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Fastenal’s stock price of $41.89 implies a valuation ratio of 35.4x forward P/E. Read our free research report to see why you should think twice about including FAST in your portfolio.
Johnson Controls (JCI)
Market Cap: $74.03 billion
Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.
Why Are We Wary of JCI?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 3.8% annually
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
Johnson Controls is trading at $122.11 per share, or 26.1x forward P/E. If you’re considering JCI for your portfolio, see our FREE research report to learn more.
One Large-Cap Stock to Buy:
McKesson (MCK)
Market Cap: $101.9 billion
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
Why Are We Backing MCK?
- 15.3% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Unparalleled scale of $387.1 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.3% to outpace its revenue gains
At $825.38 per share, McKesson trades at 19.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even 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 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.