
2 Large-Cap Stocks with Solid Fundamentals and 1 to Avoid

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 dynamic can trouble even the most skilled investors, but luckily for you, we started StockStory to help you navigate these trade-offs and uncover exceptional companies that break the mold. That said, here are two large-cap stocks whose competitive advantages create flywheel effects and one that could be stalling.
One Large-Cap Stock to Sell:
Kraft Heinz (KHC)
Market Cap: $36.21 billion
The result of a 2015 mega-merger between Kraft and Heinz, Kraft Heinz (NASDAQ:KHC) is a packaged foods giant whose products span coffee to cheese to packaged meat.
Why Do We Pass on KHC?
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Shrinking unit sales over the past two years imply it may need to invest in product improvements to get back on track
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Forecasted revenue decline of 3.5% for the upcoming 12 months implies demand will fall off a cliff
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Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 10.7 percentage points
Kraft Heinz is trading at $30.20 per share, or 10x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than KHC .
Two Large-Cap Stocks to Watch:
AMD (AMD)
Market Cap: $163.3 billion
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Are We Fans of AMD?
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Annual revenue growth of 30.8% over the past five years was outstanding, reflecting market share gains this cycle
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Projected revenue growth of 22.9% for the next 12 months is above its two-year trend, pointing to accelerating demand
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Earnings per share grew by 39.7% annually over the last five years, massively outpacing its peers
AMD’s stock price of $100.20 implies a valuation ratio of 20.7x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it’s free .
Intuitive Surgical (ISRG)
Market Cap: $177.4 billion
Founded in 1995 as a pioneer in its field, Intuitive Surgical (NASDAQ:ISRG) is a medical technology company best known for its da Vinci robotic surgical systems, which enable minimally invasive surgeries using automation.
Why Does ISRG Catch Our Eye?
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System Placement averaged 9.7% growth over the past two years and imply healthy demand for its products
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Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
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Earnings per share grew by 11.5% annually over the last five years, comfortably beating the peer group average