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 existing offerings may be tapped out and some other investments you should look into instead.
Autodesk (ADSK)
Market Cap: $63.67 billion
Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.
Why Does ADSK Give Us Pause?
- Annual revenue growth of 13.5% over the last five years was below our standards for the software sector
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Static operating margin over the last year shows it couldn’t become more efficient
Autodesk’s stock price of $300.34 implies a valuation ratio of 8.3x forward price-to-sales. Read our free research report to see why you should think twice about including ADSK in your portfolio.
Nasdaq (NDAQ)
Market Cap: $53.59 billion
Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.
Why Are We Cautious About NDAQ?
- Annual earnings per share growth of 9.2% underperformed its revenue over the last two years, showing its incremental sales were less profitable
At $93.38 per share, Nasdaq trades at 24.8x forward P/E. If you’re considering NDAQ for your portfolio, see our FREE research report to learn more.
CME Group (CME)
Market Cap: $98.23 billion
Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ: CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.
Why Does CME Fall Short?
- Annual revenue growth of 5.4% over the last five years was below our standards for the financials sector
- Earnings per share lagged its peers over the last five years as they only grew by 9.8% annually
CME Group is trading at $272.37 per share, or 23.4x forward P/E. To fully understand why you should be careful with CME, check out our full research report (it’s free for active Edge members).
Stocks We Like More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. 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-small-cap company Exlservice (+354% 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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