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 leading the market forward and one that could be in trouble.
One Stock to Sell:
Marriott (MAR)
Market Cap: $85.28 billion
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Why Is MAR Risky?
- Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
- Poor expense management has led to an operating margin of 15.4% that is below the industry average
- Free cash flow margin is expected to increase by 1.1 percentage points next year, suggesting the company will have more capital to invest or return to shareholders
Marriott’s stock price of $322.66 implies a valuation ratio of 27.2x forward P/E. To fully understand why you should be careful with MAR, check out our full research report (it’s free).
Two Stocks to Watch:
Take-Two (TTWO)
Market Cap: $38.46 billion
Best known for its Grand Theft Auto and NBA 2K franchises, Take Two (NASDAQ: TTWO) is one of the world’s largest video game publishers.
Why Is TTWO Interesting?
- Market share is on track to rise over the next 12 months as its 28% projected revenue growth implies demand will accelerate from its three-year trend
- Highly efficient business model is illustrated by its impressive 14.9% EBITDA margin
- Free cash flow margin expanded by 4.9 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $206.97 per share, Take-Two trades at 25.1x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Mastercard (MA)
Market Cap: $453.5 billion
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Are We Backing MA?
- Impressive 16.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share buybacks propelled its annual earnings per share growth to 21.5%, which outperformed its revenue gains over the last five years
- ROE punches in at 169%, illustrating management’s expertise in identifying profitable investments
Mastercard is trading at $508.00 per share, or 25.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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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.
