
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. That said, here is one S&P 500 stock that could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
Bio-Techne (TECH)
Market Cap: $9.27 billion
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ:TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Why Should You Dump TECH?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Smaller revenue base of $1.22 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- 11.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Bio-Techne’s stock price of $59.26 implies a valuation ratio of 27.9x forward P/E. If you’re considering TECH for your portfolio, see our FREE research report to learn more.
Gartner (IT)
Market Cap: $10.44 billion
With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE:IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities.
Why Do We Think Twice About IT?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Free cash flow margin shrank by 8.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $154.33 per share, Gartner trades at 11.8x forward P/E. Read our free research report to see why you should think twice about including IT in your portfolio.
One Stock to Buy:
Arthur J. Gallagher (AJG)
Market Cap: $56.93 billion
Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE:AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide.
Why Will AJG Beat the Market?
- Impressive 17.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 17.7% annually
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Arthur J. Gallagher is trading at $223.07 per share, or 17x forward P/E. Is now the time to initiate a position? See for yourself in our full 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 meeting 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.