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 is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Stocks to Sell:
Stanley Black & Decker (SWK)
Market Cap: $11.04 billion
With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE: SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.
Why Should You Dump SWK?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Stanley Black & Decker’s stock price of $71.13 implies a valuation ratio of 13.1x forward P/E. Check out our free in-depth research report to learn more about why SWK doesn’t pass our bar.
JPMorgan Chase (JPM)
Market Cap: $771.8 billion
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE: JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Is JPM Not Exciting?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.9% for the last two years
- Inferior net interest margin of 2.6% means it must compensate for lower profitability through increased loan originations
- Anticipated 2.3 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
JPMorgan Chase is trading at $285.86 per share, or 2.1x forward P/B. To fully understand why you should be careful with JPM, check out our full research report (it’s free).
One Stock to Buy:
Synchrony Financial (SYF)
Market Cap: $22.25 billion
Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE: SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.
Why Is SYF a Top Pick?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive 17.4% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
- Industry-leading 22.8% return on equity demonstrates management’s skill in finding high-return investments
At $64.01 per share, Synchrony Financial trades at 6.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
