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.
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 two S&P 500 stocks leading the market forward and one best left off your watchlist.
One stock to sell:
GE HealthCare (GEHC)
Market cap: $36.47 billion
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ: GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Are We Wary of GEHC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Anticipated sales growth of 4.4% for the next year implies demand will be shaky
- Stagnant returns on capital show management has failed to improve the company’s business quality
GE HealthCare is trading at $80.31 per share, or 14.9x forward P/E. To fully understand why you should be careful with GEHC, check out our full research report (it’s free).
Two stocks to watch:
UnitedHealth (UNH)
Market cap: $363 billion
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Do We Like UNH?
- 10% annual revenue growth over the last five years was better than the sector average, highlighting the value of its products and services
- Enormous revenue base of $449.7 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Industry-leading 19.1% return on capital demonstrates management’s skill in finding high-return investments
UnitedHealth’s stock price of $398.00 implies a valuation ratio of 17.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Arthur J. Gallagher (AJG)
Market cap: $70.12 billion
Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE: AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide.
Why Is AJG a Good Business?
- Annual revenue growth of 20.1% over the last two years was superb and indicates its market share increased during this cycle
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 18.6% annually
- Robust free cash flow margin of 17.2% gives it many options for capital deployment
At $273.44 per share, Arthur J. Gallagher trades at 19.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
