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.

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 existing offerings may be tapped out and some other investments you should look into instead.

Hershey (HSY)

Market Cap: $39.49 billion

Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.

Why Are We Wary of HSY?

1. Shrinking unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 5.2 percentage points
3. Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 3.8% annually

Hershey’s stock price of $192.37 implies a valuation ratio of 29.1x forward P/E. If you’re considering HSY for your portfolio, see our FREE research report to learn more.

Union Pacific (UNP)

Market Cap: $139.5 billion

Part of the transcontinental railroad project, Union Pacific (NYSE: UNP) is a freight transportation company that operates a major railroad network.

Why Do We Pass on UNP?

1. Disappointing unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.3%
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.8 percentage points

At $234.75 per share, Union Pacific trades at 18.7x forward P/E. To fully understand why you should be careful with UNP, check out our full research report (it’s free).

AIG (AIG)

Market Cap: $40.4 billion

With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE: AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.

Why Do We Think AIG Will Underperform?

1. Insurance policy sales contracted this cycle as net premiums earned decreased by 5.8% annually over the last five years
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1% annually
3. Products and services are facing profitability challenges during this cycle, as seen in its flat book value per share over the last five years

AIG is trading at $74.27 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including AIG in your portfolio.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.