1 Large-Cap Stock to Research Further and 2 We Avoid
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 is one large-cap stock with attractive long-term potential and two whose momentum may slow.
Two Large-Cap Stocks to Sell:
IQVIA (IQV)
Market Cap: $43.93 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?
- The company has faced growth challenges as its 5.6% annual revenue increases over the last five years fell short of other healthcare companies
- Adjusted operating margin didn’t move over the last two years, showing it couldn’t increase its efficiency
- Free cash flow margin didn’t grow over the last five years
IQVIA’s stock price of $266.12 implies a valuation ratio of 19.9x forward P/E. Check out our free in-depth research report to learn more about why IQV doesn’t pass our bar.
PNC Financial Services Group (PNC)
Market Cap: $86.36 billion
Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE:PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.
Why Are We Wary of PNC?
- Large revenue base makes it harder to expand quickly, and its annual net interest income growth of 9.4% over the last five years was below our standards for the banking sector
- Net interest margin of 2.9% reflects its high servicing and capital costs
- Estimated tangible book value per share decline of 3.7% for the next 12 months implies a challenging profitability environment
PNC Financial Services Group is trading at $216.30 per share, or 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than PNC.
One Large-Cap Stock to Watch:
Cigna (CI)
Market Cap: $79.88 billion
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE:CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Are We Positive on CI?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 13.8% annual sales growth over the last two years
- Massive revenue base of $282.1 billion gives it meaningful leverage when negotiating reimbursement rates
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 12% annually
At $300.14 per share, Cigna trades at 9.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.