Large-cap stocks have the power to shape entire industries thanks to their size and widespread influence. With such vast footprints, however, finding new areas for growth is much harder than for smaller, more agile players.
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 three large-cap stocks whose existing offerings may be tapped out and some other investments you should look into instead.
Waste Connections (WCN)
Market Cap: $39.5 billion
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE: WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Why Do We Think Twice About WCN?
- Estimated sales growth of 5.4% for the next 12 months implies demand will slow from its two-year trend
- 2.6 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
- Underwhelming 6.6% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
At $157.73 per share, Waste Connections trades at 28.3x forward P/E. To fully understand why you should be careful with WCN, check out our full research report (it’s free).
State Street (STT)
Market Cap: $45.63 billion
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE: STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
Why Are We Hesitant About STT?
- The company has faced growth challenges as its 4.6% annual revenue increases over the last five years fell short of other financials companies
State Street’s stock price of $159.71 implies a valuation ratio of 12.9x forward P/E. Check out our free in-depth research report to learn more about why STT doesn’t pass our bar.
Stocks We Like More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
