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.
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 that could be in trouble.
One Stock to Sell:
PNC Financial Services Group (PNC)
Market Cap: $89.23 billion
Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.
Why Do We Think Twice About PNC?
- Annual net interest income growth of 9.4% over the last five years lagged behind its banking peers as its large revenue base made it difficult to generate incremental demand
- Net interest margin of 2.8% reflects its high servicing and capital costs
- Estimated tangible book value per share growth of 7.2% for the next 12 months implies profitability will slow from its two-year trend
PNC Financial Services Group’s stock price of $224.57 implies a valuation ratio of 1.5x forward P/B. Dive into our free research report to see why there are better opportunities than PNC.
Two Stocks to Watch:
Teledyne (TDY)
Market Cap: $28.32 billion
Playing a role in mapping the ocean floor as we know it today, Teledyne (NYSE: TDY) offers digital imaging and instrumentation products for various industries.
Why Are We Fans of TDY?
- Impressive 12.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Highly efficient business model is illustrated by its impressive 17.9% operating margin, and its operating leverage amplified its profits over the last five years
- Free cash flow margin increased by 11.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Teledyne is trading at $610.93 per share, or 24.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Marsh (MRSH)
Market Cap: $80.66 billion
With roots dating back to 1871 and a presence in over 130 countries, Marsh (NYSE: MRSH) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses.
Why Are We Positive on MRSH?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 8.8% annual sales growth over the last two years
- Enormous revenue base of $27.95 billion provides significant distribution advantages
- Strong free cash flow margin of 15.9% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $169.83 per share, Marsh trades at 15.6x forward P/E. Is now a good time to buy? 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 (+1,460% 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.
