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. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that could be in trouble.
One Stock to Sell:
General Motors (GM)
Market Cap: $73.29 billion
Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.
Why Are We Cautious About GM?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- High input costs result in an inferior gross margin of 12.2% that must be offset through higher volumes
- Efficiency has decreased over the last five years as its operating margin fell by 5.8 percentage points
General Motors is trading at $81.09 per share, or 6.4x forward P/E. If you’re considering GM for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Waste Management (WM)
Market Cap: $94.59 billion
Headquartered in Houston, Waste Management (NYSE:WM) is a provider of comprehensive waste management services in North America.
Why Do We Like WM?
- Impressive 11.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Offerings are difficult to replicate at scale and lead to a top-tier gross margin of 38.9%
- Highly efficient business model is illustrated by its impressive 17.4% operating margin
Waste Management’s stock price of $234.30 implies a valuation ratio of 28.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Zoetis (ZTS)
Market Cap: $53.46 billion
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Are We Fans of ZTS?
- Constant currency growth averaged 9.1% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Robust free cash flow margin of 21.5% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
- ROIC punches in at 29%, illustrating management’s expertise in identifying profitable investments
At $127 per share, Zoetis trades at 18x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.