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3 Large-Cap Stocks We Keep Off Our Radar

CBRE Cover Image

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. That said, here are three large-cap stocks whose existing offerings may be tapped out and some other investments you should look into instead.

CBRE (CBRE)

Market Cap: $49.92 billion

Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.

Why Do We Steer Clear of CBRE?

  1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 10.3% for the last five years
  2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $170.43 per share, CBRE trades at 23.4x forward P/E. To fully understand why you should be careful with CBRE, check out our full research report (it’s free).

PACCAR (PCAR)

Market Cap: $64.74 billion

Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

Why Does PCAR Fall Short?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Sales are projected to tank by 6.2% over the next 12 months as its demand continues evaporating
  3. Earnings per share have contracted by 19.6% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

PACCAR is trading at $123.22 per share, or 23.9x forward P/E. Check out our free in-depth research report to learn more about why PCAR doesn’t pass our bar.

Kroger (KR)

Market Cap: $40.45 billion

With a sprawling network of over 2,400 locations offering digital pickup services, Kroger (NYSE: KR) operates supermarkets, pharmacies, and fuel centers across 35 states, offering customers groceries, household items, and private-label products.

Why Should You Sell KR?

  1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
  2. Gross margin of 23.7% is an output of its commoditized inventory
  3. Sales over the last three years were less profitable as its earnings per share fell by 29.8% annually while its revenue was flat

Kroger’s stock price of $63.80 implies a valuation ratio of 12.1x forward P/E. Read our free research report to see why you should think twice about including KR in your portfolio.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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