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.
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.
Keysight (KEYS)
Market Cap: $30.62 billion
Spun off from Hewlett-Packard in 2014, Keysight (NYSE:KEYS) offers electronic measurement products for use in various sectors.
Why Are We Cautious About KEYS?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 1.9% declines over the past two years
- Earnings per share have dipped by 9.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Keysight is trading at $178.15 per share, or 23.7x forward P/E. Read our free research report to see why you should think twice about including KEYS in your portfolio.
IQVIA (IQV)
Market Cap: $31.83 billion
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Is IQV Not Exciting?
- Annual sales growth of 3.4% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- 3.5 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
IQVIA’s stock price of $187.22 implies a valuation ratio of 15.1x forward P/E. Dive into our free research report to see why there are better opportunities than IQV.
Hartford (HIG)
Market Cap: $36.82 billion
Recognizable by its iconic stag logo that dates back to 1810, The Hartford (NYSE:HIG) provides property and casualty insurance, group benefits, and investment products to individuals and businesses across the United States.
Why Does HIG Give Us Pause?
- Large revenue base constrains its growth potential, as seen in its unexciting 6.2% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
- Estimated sales decline of 15% for the next 12 months implies a challenging demand environment
- Sizable asset base leads to capital growth challenges as its 5.4% annual book value per share increases over the last five years fell short of other insurance companies
At $130.95 per share, Hartford trades at 2.1x forward P/B. Check out our free in-depth research report to learn more about why HIG doesn’t pass our bar.
Stocks We Like More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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