The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
STERIS (STE)
Market Cap: $21.45 billion
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Is STE Not Exciting?
- ROIC of 5% reflects management’s challenges in identifying attractive investment opportunities
At $218.71 per share, STERIS trades at 20.2x forward P/E. To fully understand why you should be careful with STE, check out our full research report (it’s free).
Equifax (EFX)
Market Cap: $22 billion
Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE: EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.
Why Do We Think Twice About EFX?
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 4.1 percentage points
- Earnings per share lagged its peers over the last five years as they only grew by 2.2% annually
Equifax is trading at $182.39 per share, or 21.1x forward P/E. Check out our free in-depth research report to learn more about why EFX doesn’t pass our bar.
One Stock to Buy:
First Solar (FSLR)
Market Cap: $20.96 billion
Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
Why Will FSLR Beat the Market?
- Annual revenue growth of 25.4% over the last two years was superb and indicates its market share increased during this cycle
- Free cash flow margin is now positive, showing the company is at an important crossroads
- Returns on capital are growing as management capitalizes on its market opportunities
First Solar’s stock price of $195.60 implies a valuation ratio of 11.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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.
