While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
Globe Life (GL)
Market Cap: $11.19 billion
With roots dating back to 1900 and a rebranding from Torchmark Corporation in 2019, Globe Life (NYSE: GL) is an insurance holding company that offers life insurance, supplemental health insurance, and annuity products through various distribution channels.
Why Are We Hesitant About GL?
- Muted 4.5% annual revenue growth over the last two years shows its demand lagged behind its insurance peers
- Sluggish 4.8% annualized growth in net premiums earned over the last two years indicates the firm trailed its insurance peers
- Annual book value per share declines of 2.2% for the past five years show its capital management struggled during this cycle
Globe Life’s stock price of $142.60 implies a valuation ratio of 1.7x forward P/B. Read our free research report to see why you should think twice about including GL in your portfolio.
Wells Fargo (WFC)
Market Cap: $248.7 billion
Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses.
Why Is WFC Not Exciting?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Loans are facing significant end-market challenges during this cycle as net interest income has declined by 1.5% annually over the last five years
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 46.7 basis points (100 basis points = 1 percentage point)
At $80.69 per share, Wells Fargo trades at 1.4x forward P/B. Dive into our free research report to see why there are better opportunities than WFC.
One Stock to Watch:
PTC (PTC)
Market Cap: $16.97 billion
Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.
Why Could PTC Be a Winner?
- Software is difficult to replicate at scale and results in a top-tier gross margin of 84.2%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Healthy operating margin of 38% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
PTC is trading at $142.66 per share, or 6.4x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
