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. Keeping that in mind, here are three large-cap stocks whose momentum may slow and a few alternatives you should consider instead.
Workday (WDAY)
Market Cap: $31.65 billion
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Are We Hesitant About WDAY?
- Sales trends were unexciting over the last two years as its 14.1% annual growth was below the typical software company
- Estimated sales growth of 10.8% for the next 12 months implies demand will slow from its two-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Workday is trading at $127.70 per share, or 2.8x forward price-to-sales. Check out our free in-depth research report to learn more about why WDAY doesn’t pass our bar.
NXP Semiconductors (NXPI)
Market Cap: $79.9 billion
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Does NXPI Fall Short?
- Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Projected sales growth of 14.6% for the next 12 months suggests sluggish demand
NXP Semiconductors’s stock price of $316.96 implies a valuation ratio of 19.2x forward P/E. Dive into our free research report to see why there are better opportunities than NXPI.
Kroger (KR)
Market Cap: $41.2 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 Are We Out on KR?
- Limited expansion of stores suggests it’s prioritizing efficiency over growth at this stage
- Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 23.8%
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
At $67.04 per share, Kroger trades at 12.8x forward P/E. Read our free research report to see why you should think twice about including KR in your portfolio.
Stocks We Like More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
