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 that may struggle.
One Stock to Sell:
Zebra (ZBRA)
Market Cap: $13.11 billion
Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ: ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.
Why Do We Think Twice About ZBRA?
- Sales trends were unexciting over the last two years as its 1.7% annual growth was below the typical business services company
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7 percentage points
At $259.34 per share, Zebra trades at 15.3x forward P/E. Dive into our free research report to see why there are better opportunities than ZBRA.
Two Stocks to Watch:
Philip Morris (PM)
Market Cap: $268.6 billion
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Will PM Beat the Market?
- Products are reaching more households as its unit sales averaged 3% growth over the past two years
- Differentiated product offerings are difficult to replicate at scale and result in a best-in-class gross margin of 65.6%
- PM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Philip Morris’s stock price of $172.84 implies a valuation ratio of 21.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
GE Vernova (GEV)
Market Cap: $174.3 billion
Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE: GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.
Why Does GEV Catch Our Eye?
- Annual revenue growth of 8.9% over the last two years was above the sector average and underscores its products and services value to customers
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 220% annually, topping its revenue gains
GE Vernova is trading at $649.05 per share, or 58.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in 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.
