Three Large-Cap Stocks to Avoid: CBRE, Johnson Controls, and Agilent

Three large-cap stocks, CBRE, Johnson Controls, and Agilent, have growth limitations due to their size, weak free cash flow margins, and shrinking returns on capital. CBRE's scale restricts growth, Johnson Controls faces sluggish demand and underwhelming returns on capital, and Agilent's returns on capital are shrinking. Investors should consider alternative investments to tap into exceptional companies that break the mold.

As the financial landscape continues to evolve, large-cap stocks have traditionally been seen as reliable investments due to their size and market stability. However, some of these behemoths are facing significant growth limitations. Three notable examples are CBRE, Johnson Controls, and Agilent, each with unique challenges that may limit their future growth potential.

# CBRE Group Inc. (CBRE)
CBRE Group Inc., a global real estate services firm, has been grappling with growth constraints due to its sheer size. Established in 1972, CBRE's extensive market presence has made it difficult for the company to maintain high growth rates. Its scale often restricts the ability to innovate and adapt quickly to market changes. Additionally, the company's free cash flow margins have been underwhelming, indicating a need for cost optimization and improved operational efficiency. Despite these challenges, CBRE remains a significant player in the real estate sector, but investors should be cautious about its growth prospects, according to a Markets FinancialContent article.

# Johnson Controls
Johnson Controls, a company specializing in smart, healthy, and sustainable buildings, has been facing sluggish demand and underwhelming returns on capital. The company's strategic investment in Accelsius, a provider of two-phase, direct-to-chip liquid cooling technology for data centers, is a positive step towards innovation. However, the broader market for Johnson Controls remains challenging, with cooling systems accounting for a significant portion of a data center's total energy consumption. The company's focus on energy efficiency is commendable, but its ability to sustain growth in this competitive market is a concern, as reported by Fire & Safety Journal Americas.

# Agilent Technologies Inc. (A)
Agilent Technologies, a life science solutions company, has seen its returns on capital shrinking over the years. Founded in 1999, Agilent has been a leader in its field, providing products and services for drug discovery, diagnostics, and research. However, the company's growth has been hindered by its size and the competitive nature of its industry. Agilent's free cash flow margins have been declining, indicating that the company may need to invest more capital to maintain its market position. While Agilent remains a strong player in its sector, investors should consider the company's growth limitations, as noted in the Markets FinancialContent article.

# Conclusion
Investors seeking growth opportunities may want to consider alternative investments that break the mold of traditional large-cap stocks. While CBRE, Johnson Controls, and Agilent continue to be significant players in their respective industries, their growth limitations should be taken into account. By exploring companies with strong competitive advantages and innovative business models, investors can tap into exceptional growth opportunities.

# References
- Markets FinancialContent article — `https://markets.financialcontent.com/wral/article/stockstory-2025-10-15-1-large-cap-stock-to-own-for-decades-and-2-we-brush-off`

- Johnson Controls announce investment in Accelsius — `https://fireandsafetyjournalamericas.com/johnson-controls-announced-investment-in-accelsius/`