Megacap stocks are behemoths that set the tone for their industries, and their massive scale typically leads to wide moats. However, the downside is that most have already exploited their existing market opportunities and must invest heavily to expand further, a risky proposition.
Sound complicated? With StockStory, it doesn’t have to be. Our job is to find you high-quality companies that can win regardless of the conditions. That said, here is one industry titan that still has big upside potential and two that could be stalling.
Two Mega-Cap Stocks to Sell:
RTX (RTX)
Market Cap: $212.3 billion
Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.
Why Do We Think Twice About RTX?
- Estimated sales growth of 4.7% for the next 12 months implies demand will slow from its two-year trend
- Earnings per share lagged its peers over the last five years as they only grew by 4.8% annually
- ROIC of 3.7% reflects management’s challenges in identifying attractive investment opportunities
At $158.72 per share, RTX trades at 25.7x forward P/E. Check out our free in-depth research report to learn more about why RTX doesn’t pass our bar.
JPMorgan Chase (JPM)
Market Cap: $828.8 billion
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE: JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Does JPM Give Us Pause?
- Estimated net interest income growth of 2.4% for the next 12 months implies demand will slow from its five-year trend
- Net interest margin of 2.6% is well below other banks, signaling its loans aren’t very profitable
- Anticipated 2.6 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
JPMorgan Chase’s stock price of $301.76 implies a valuation ratio of 2.4x forward P/B. To fully understand why you should be careful with JPM, check out our full research report (it’s free).
One Mega-Cap Stock to Buy:
GE Aerospace (GE)
Market Cap: $291.8 billion
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Do We Love GE?
- Impressive 13.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Strong free cash flow margin of 19.2% enables it to reinvest or return capital consistently
- Returns on capital are growing as management capitalizes on its market opportunities
GE Aerospace is trading at $275.96 per share, or 46.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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