The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are three S&P 500 stocks to steer clear of and a few alternatives to consider.
Viatris (VTRS)
Market Cap: $18.57 billion
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Do We Steer Clear of VTRS?
- Sales tumbled by 1.7% annually over the last two years, showing market trends are working against it during this cycle
- Sales were less profitable over the last five years as its earnings per share fell by 8% annually, worse than its revenue declines
- Push for growth has led to negative returns on capital, signaling value destruction, and its shrinking returns suggest its past profit sources are losing steam
Viatris is trading at $16.26 per share, or 6.4x forward P/E. Check out our free in-depth research report to learn more about why VTRS doesn’t pass our bar.
Verisk (VRSK)
Market Cap: $23.28 billion
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Does VRSK Fall Short?
- 1.7% annual revenue growth over the last five years was slower than its business services peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 8% annually
At $179 per share, Verisk trades at 21.5x forward P/E. Dive into our free research report to see why there are better opportunities than VRSK.
Citizens Financial Group (CFG)
Market Cap: $30.94 billion
Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.
Why Are We Wary of CFG?
- Muted 6.6% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- 2.3% annual tangible book value per share growth over the last five years was slower than its banking peers
Citizens Financial Group’s stock price of $73.44 implies a valuation ratio of 1.2x forward P/B. To fully understand why you should be careful with CFG, check out our full research report (it’s free).
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
