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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 is one large-cap stock that still has big upside potential and two that could be stalling.

Two Large-Cap Stocks to Sell:

AT&T (T)

Market Cap: $196.7 billion

Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Do We Think T Will Underperform?

1. Annual sales declines of 7.3% for the past five years show its products and services struggled to connect with the market

2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 10.9% annually, worse than its revenue

3. ROIC of 3.3% reflects management’s challenges in identifying attractive investment opportunities

AT&T is trading at $27.30 per share, or 13.1x forward P/E. Read our free research report to see why you should think twice about including T in your portfolio, it’s free.

Vertex Pharmaceuticals (VRTX)

Market Cap: $111.5 billion

Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.

Why Are We Wary of VRTX?

1. Earnings per share fell by 15.6% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 58.8 percentage points

3. Waning returns on capital imply its previous profit engines are losing steam

At $440 per share, Vertex Pharmaceuticals trades at 23.4x forward P/E. If you’re considering VRTX for your portfolio, see our FREE research report to learn more.

One Large-Cap Stock to Buy:

Lululemon (LULU)

Market Cap: $38.32 billion

Originally serving yogis and hockey players, Lululemon (NASDAQ:LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Should You Buy LULU?

1. Locations open for at least a year are seeing increased demand as same-store sales have averaged 8.2% growth over the past two years

2. Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 58.8%

3. Robust free cash flow margin of 16% gives it many options for capital deployment