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 could be in trouble.
One Stock to Sell:
CooperCompanies (COO)
Market Cap: $11.92 billion
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Why Are We Hesitant About COO?
- Sales trends were unexciting over the last two years as its 6.4% annual growth was below the typical healthcare company
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $61.15 per share, CooperCompanies trades at 13.1x forward P/E. Read our free research report to see why you should think twice about including COO in your portfolio.
Two Stocks to Watch:
Carvana (CVNA)
Market Cap: $11.46 billion
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
Why Is CVNA Interesting?
- Market share has increased over the last three years as its 21% annual revenue growth was exceptional
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 40.3% outpaced its revenue gains
- Free cash flow margin increased by 12.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders
Carvana’s stock price of $398.76 implies a valuation ratio of 91.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Erie Indemnity (ERIE)
Market Cap: $11.33 billion
Operating under a unique business model dating back to 1925, Erie Indemnity (NASDAQ: ERIE) serves as the attorney-in-fact for Erie Insurance Exchange, managing policy issuance, claims handling, and investment services for this reciprocal insurer.
Why Are We Fans of ERIE?
- Solid 9.9% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Impressive 14.3% annual book value per share growth over the last five years indicates it’s building equity value this cycle
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Erie Indemnity is trading at $216.83 per share, or 2.7x trailing 12-month price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
