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Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task.

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 is one large-cap stock that still has big upside potential and two whose existing offerings may be tapped out.

Two Large-Cap Stocks to Sell:

Parker-Hannifin (PH)

Market Cap: $82.75 billion

Founded in 1917, Parker Hannifin (NYSE:PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.

Why Does PH Give Us Pause?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

2. Estimated sales growth of 2% for the next 12 months implies demand will slow from its two-year trend

3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 2.5 percentage points

Parker-Hannifin’s stock price of $647.59 implies a valuation ratio of 22.8x forward P/E. Read our free research report to see why you should think twice about including PH in your portfolio, it’s free.

Carrier Global (CARR)

Market Cap: $61.25 billion

Founded by the inventor of air conditioning, Carrier Global (NYSE:CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Do We Avoid CARR?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

2. Free cash flow margin dropped by 5.9 percentage points over the last five years, implying the company became more capital intensive as competition picked up

3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Carrier Global is trading at $70.38 per share, or 23.3x forward P/E. If you’re considering CARR for your portfolio, see our FREE research report to learn more.

One Large-Cap Stock to Watch:

Waste Connections (WCN)

Market Cap: $50.46 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 Does WCN Catch Our Eye?

1. Annual revenue growth of 10.5% over the past five years was outstanding, reflecting market share gains this cycle

2. Operating margin expanded by 4.1 percentage points over the last five years as it scaled and became more efficient

3. Robust free cash flow margin of 15.2% gives it many options for capital deployment