While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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 could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
General Dynamics (GD)
Market Cap: $93.51 billion
Creator of the famous M1 Abrahms tank, General Dynamics (NYSE:GD) develops aerospace, marine systems, combat systems, and information technology products.
Why Are We Cautious About GD?
- New orders were hard to come by as its average backlog growth of 6.9% over the past two years underwhelmed
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 7% annually
General Dynamics’s stock price of $345.67 implies a valuation ratio of 22.1x forward P/E. To fully understand why you should be careful with GD, check out our full research report (it’s free).
Equifax (EFX)
Market Cap: $23.79 billion
Holding detailed financial records on over 800 million consumers worldwide and dating back to 1899, Equifax (NYSE:EFX) is a global data analytics company that collects, analyzes, and sells consumer and business credit information to lenders, employers, and other businesses.
Why Is EFX Not Exciting?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 4.1 percentage points
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 2.2% annually
Equifax is trading at $198.75 per share, or 23.5x forward P/E. If you’re considering EFX for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Chipotle (CMG)
Market Cap: $48.48 billion
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Does CMG Catch Our Eye?
- Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth averaged 2.9% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Unparalleled revenue scale of $11.93 billion gives it advantageous pricing and terms with suppliers
At $37.37 per share, Chipotle trades at 33.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
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