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Large-Cap Stocks Facing Near-Term Headwinds: Western Digital, Starbucks, and BD
ByAinvest
Tuesday, Sep 23, 2025 3:09 am ET1min read
Western Digital, Starbucks, and BD are three large-cap stocks facing challenges. Western Digital has struggled with declining sales and negative gross margins, while Starbucks has poor same-store sales and rising costs. BD has a large revenue base, making it harder to increase sales quickly, and a shrinking free cash flow margin. These stocks may underperform, and investors should consider alternative opportunities.
Large-cap stocks are often considered stalwarts in the investment landscape, known for their resilience and stability. However, even these giants face challenges that can impact their performance. This article examines three large-cap stocks—Western Digital (WDC), Starbucks (SBUX), and BD (BIIB)—that are currently facing significant hurdles.# Western Digital (WDC)
Western Digital, a leading data storage provider, has been grappling with declining sales and negative gross margins. According to a recent SEC filing, institutional investors have been adding to their positions in WDC, with IFM Investors Pty Ltd boosting its holdings by 5.9% during the second quarter [1]. Despite this, the company has struggled with a 30% revenue increase year-over-year, but a 24.93% return on equity. Analysts have mixed views, with Wedbush and Mizuho raising their price targets, while Susquehanna maintains a neutral rating [1]. The stock's price has seen a 1-year low of $28.83 and a high of $107.18, indicating volatility [1].
# Starbucks (SBUX)
Starbucks, a global coffeehouse chain, has been facing issues with same-store sales and rising costs. The company's same-store sales have been sluggish, and operational expenses have been on the rise. Despite these challenges, the stock has shown resilience, trading at a forward P/E ratio of 21.5x [1]. Analysts have mixed views, with some predicting a rebound in sales, while others caution about the company's ability to maintain profitability.
# BD (BIIB)
BD, a healthcare company, has a large revenue base, making it difficult to achieve rapid sales growth. The company has also seen a shrinking free cash flow margin, which can impact its ability to invest in growth initiatives. Despite these challenges, BD has a dominant market position and a strong balance sheet. The stock trades at a forward P/E ratio of 15.3x [1].
Conclusion
These large-cap stocks—Western Digital, Starbucks, and BD—face significant challenges that could impact their performance. Investors should carefully consider these issues and weigh the potential risks and rewards before making investment decisions. It is essential to stay informed about the latest developments and analyst opinions to make well-informed investment choices.
References
[1] https://finance.yahoo.com/news/2-large-cap-stocks-consider-044126850.html
[2] https://www.marketbeat.com/instant-alerts/filing-ifm-investors-pty-ltd-has-404-million-stock-holdings-in-western-digital-corporation-wdc-2025-09-22/
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