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 could be in trouble.
Two Stocks to Sell:
Campbell's (CPB)
Market Cap: $9.63 billion
With its iconic canned soup as its cornerstone product, Campbell's (NASDAQ:CPB) is a packaged food company with an illustrious portfolio of brands.
Why Are We Hesitant About CPB?
- Declining unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Sales are projected to remain flat over the next 12 months as demand decelerates from its three-year trend
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3.6 percentage points
Campbell's is trading at $32.67 per share, or 10.6x forward P/E. Dive into our free research report to see why there are better opportunities than CPB.
Baxter (BAX)
Market Cap: $11.51 billion
With a history dating back to 1931 and products used in over 100 countries, Baxter International (NYSE:BAX) provides essential healthcare products including dialysis therapies, IV solutions, infusion systems, surgical products, and patient monitoring technologies to hospitals and clinics worldwide.
Why Is BAX Risky?
- Sales tumbled by 6.2% annually over the last two years, showing market trends are working against its favor during this cycle
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Sales over the last five years were less profitable as its earnings per share fell by 3% annually while its revenue was flat
Baxter’s stock price of $22.50 implies a valuation ratio of 8.6x forward P/E. To fully understand why you should be careful with BAX, check out our full research report (it’s free).
One Stock to Watch:
Apple (AAPL)
Market Cap: $3.02 trillion
Creator of the iPhone and App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software.
Why Are We Fans of AAPL?
- Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
- Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
- The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.
At $203.25 per share, Apple trades at 27.3x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.