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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two that may struggle.
Two Stocks to Sell:
EchoStar (SATS)
Market Cap: $36.73 billion
Following its 2023 acquisition of DISH Network, EchoStar (NASDAQ: SATS) provides satellite communications, pay-TV services, wireless networks, and broadband solutions across consumer and enterprise markets.
Why Is SATS Risky?
- Sales tumbled by 6.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- Negative earnings profile makes it challenging to secure favorable financing terms from lenders
EchoStar’s stock price of $127.58 implies a valuation ratio of 29.6x forward EV-to-EBITDA. If you’re considering SATS for your portfolio, see our FREE research report to learn more.
M&T Bank (MTB)
Market Cap: $31.07 billion
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Why Does MTB Worry Us?
- 3% annual revenue growth over the last two years was slower than its banking peers
- Estimated net interest income growth of 3.3% for the next 12 months implies demand will slow from its five-year trend
- Estimated tangible book value per share growth of 4.7% for the next 12 months implies profitability will slow from its two-year trend
At $212.19 per share, M&T Bank trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why MTB doesn’t pass our bar.
One Stock to Watch:
Waste Management (WM)
Market Cap: $86.49 billion
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Why Do We Like WM?
- Market share has increased this cycle as its 10.8% annual revenue growth over the last two years was exceptional
- Superior product capabilities and pricing power result in a premier gross margin of 39%
- Healthy operating margin of 17.4% shows it’s a well-run company with efficient processes
Waste Management is trading at $216.07 per share, or 26.4x forward P/E. Is now the time to initiate a position? Find out in our full 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
