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 is one S&P 500 stock that is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
Constellation Brands (STZ)
Market Cap: $25.83 billion
With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Does STZ Worry Us?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Projected sales decline of 3.1% for the next 12 months points to an even tougher demand environment ahead
- ROIC of 9% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Constellation Brands’s stock price of $148.01 implies a valuation ratio of 12.2x forward P/E. If you’re considering STZ for your portfolio, see our FREE research report to learn more.
Norwegian Cruise Line (NCLH)
Market Cap: $9.43 billion
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Why Are We Out on NCLH?
- Sluggish trends in its passenger cruise days suggest customers aren’t adopting its solutions as quickly as the company hoped
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Norwegian Cruise Line is trading at $20.63 per share, or 8.5x forward P/E. Check out our free in-depth research report to learn more about why NCLH doesn’t pass our bar.
One Stock to Watch:
Pfizer (PFE)
Market Cap: $152.4 billion
With roots dating back to 1849 when two German immigrants opened a fine chemicals business in Brooklyn, Pfizer (NYSE: PFE) is a global biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines for a wide range of diseases and conditions.
Why Are We Fans of PFE?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.1% over the past two years
- Enormous revenue base of $62.58 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
At $26.74 per share, Pfizer trades at 9.2x forward P/E. Is now a good time to buy? 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.
