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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
FOX (FOXA)
Market Cap: $24.2 billion
Founded in 1915, Fox (NASDAQ: FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.
Why Is FOXA Risky?
- The company has faced growth challenges as its 5.5% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Projected 4.7 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Returns on capital haven’t budged, indicating management couldn’t drive additional value creation
FOX’s stock price of $59.74 implies a valuation ratio of 11.7x forward P/E. Read our free research report to see why you should think twice about including FOXA in your portfolio.
Ingersoll Rand (IR)
Market Cap: $33.85 billion
Started with the invention of the steam drill, Ingersoll Rand (NYSE: IR) provides mission-critical air, gas, liquid, and solid flow creation solutions.
Why Are We Cautious About IR?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.1%
- ROIC of 5.9% reflects management’s challenges in identifying attractive investment opportunities
Ingersoll Rand is trading at $86.41 per share, or 25.6x forward P/E. Check out our free in-depth research report to learn more about why IR doesn’t pass our bar.
One Stock to Buy:
CrowdStrike (CRWD)
Market Cap: $108.8 billion
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Is CRWD a Top Pick?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 26% over the last year
- Estimated revenue growth of 22.7% for the next 12 months implies its momentum over the last two years will continue
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $428.80 per share, CrowdStrike trades at 18.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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.
