While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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 that could be in trouble.
Two Stocks to Sell:
Cummins (CMI)
Market Cap: $92.16 billion
With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE: CMI) offers engines and power systems.
Why Is CMI Not Exciting?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Gross margin of 24.7% reflects its high production costs
- Eroding returns on capital suggest its historical profit centers are aging
At $668.46 per share, Cummins trades at 22.1x forward P/E. Dive into our free research report to see why there are better opportunities than CMI.
Masco (MAS)
Market Cap: $13.85 billion
Headquartered just outside of Detroit, MI, Masco (NYSE: MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Why Do We Pass on MAS?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales growth of 1.7% for the next 12 months suggests sluggish demand
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Masco’s stock price of $69.87 implies a valuation ratio of 15.9x forward P/E. If you’re considering MAS for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Raymond James (RJF)
Market Cap: $28.34 billion
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Does RJF Stand Out?
- 11.6% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.2% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Raymond James is trading at $145.40 per share, or 12.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.
