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 are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One Stock to Sell:
Trimble (TRMB)
Market Cap: $11.66 billion
Playing a role in the construction of the Paris Grand, Trimble (NASDAQ: TRMB) offers geospatial devices and technology to the agriculture, construction, transportation, and logistics industries.
Why Does TRMB Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2% annually over the last two years
- 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
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up
Trimble’s stock price of $50.41 implies a valuation ratio of 13.6x forward P/E. To fully understand why you should be careful with TRMB, check out our full research report (it’s free).
Two Stocks to Buy:
Insulet (PODD)
Market Cap: $10.33 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Is PODD a Top Pick?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 26.8% over the past two years
- Free cash flow margin expanded by 25.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Rising returns on capital show management is finding more attractive investment opportunities
At $149.18 per share, Insulet trades at 22.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
American Express (AXP)
Market Cap: $217.3 billion
Recognizable by its iconic green logo and the slogan "Don't leave home without it," American Express (NYSE: AXP) is a global payments company that issues credit and charge cards, processes merchant transactions, and offers travel and lifestyle benefits to consumers and businesses.
Why Do We Love AXP?
- Annual revenue growth of 15.5% over the last five years was superb and indicates its market share increased during this cycle
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 33% return on equity demonstrates management’s skill in finding high-return investments
American Express is trading at $325.55 per share, or 17.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
