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. Keeping that in mind, here are two S&P 500 stocks leading the market forward and one that may struggle.
One Stock to Sell:
Royal Caribbean (RCL)
Market Cap: $78.1 billion
Established in 1968, Royal Caribbean Cruises (NYSE: RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Why Do We Think RCL Will Underperform?
- Performance surrounding its passenger cruise days has lagged its peers
- Low free cash flow margin of 8.8% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $292.50 per share, Royal Caribbean trades at 15.3x forward P/E. If you’re considering RCL for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Allegion (ALLE)
Market Cap: $13.8 billion
Allegion plc (NYSE: ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.
Why Do We Like ALLE?
- Highly efficient business model is illustrated by its impressive 19.8% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
- Free cash flow margin increased by 6.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- ROIC punches in at 21.9%, illustrating management’s expertise in identifying profitable investments
Allegion is trading at $162.40 per share, or 17.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Vulcan Materials (VMC)
Market Cap: $35.77 billion
Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.
Why Could VMC Be a Winner?
- Annual revenue growth of 10.6% over the last five years was superb and indicates its market share increased during this cycle
- Operating margin expanded by 6.2 percentage points over the last five years as it scaled and became more efficient
- Free cash flow margin grew by 6.8 percentage points over the last five years, giving the company more chips to play with
Vulcan Materials’s stock price of $276.40 implies a valuation ratio of 27.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
