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. 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:
Starbucks (SBUX)
Market Cap: $123.7 billion
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Why Is SBUX Not Exciting?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new diners into its restaurants
- Sales are projected to tank by 1.6% over the next 12 months as demand evaporates
- Efficiency has decreased over the last year as its operating margin fell by 3 percentage points
At $108.63 per share, Starbucks trades at 36.2x forward P/E. Read our free research report to see why you should think twice about including SBUX in your portfolio.
Trimble (TRMB)
Market Cap: $13.14 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 Are We Cautious About TRMB?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 6% annually
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its decreasing returns suggest its historical profit centers are aging
Trimble is trading at $56.35 per share, or 15.1x forward P/E. Dive into our free research report to see why there are better opportunities than TRMB.
One Stock to Watch:
Cardinal Health (CAH)
Market Cap: $54.46 billion
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Does CAH Stand Out?
- Unparalleled scale of $254.2 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
- Share buybacks catapulted its annual earnings per share growth to 14.6%, which outperformed its revenue gains over the last five years
Cardinal Health’s stock price of $233.39 implies a valuation ratio of 19.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
