3 S&P 500 Stocks We Think Twice About

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 are three S&P 500 stocks to steer clear of and a few alternatives to consider.

Live Nation (LYV)

Market Cap: $38.75 billion

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE:LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Why Are We Out on LYV?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.6% over the last two years was below our standards for the consumer discretionary sector
2. Poor expense management has led to an operating margin of 3.6% that is below the industry average
3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.5 percentage points

At $165.89 per share, Live Nation trades at 125.6x forward P/E. To fully understand why you should be careful with LYV, check out our full research report (it’s free).

Veralto (VLTO)

Market Cap: $21.13 billion

Spun off from Danaher in 2023, Veralto (NYSE:VLTO) provides water analytics and treatment solutions.

Why Are We Wary of VLTO?

1. 4.4% annual revenue growth over the last four years was slower than its industrials peers
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.5%

Veralto is trading at $86.07 per share, or 20.1x forward P/E. Dive into our free research report to see why there are better opportunities than VLTO.

Fortive (FTV)

Market Cap: $18.39 billion

Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.

Why Should You Sell FTV?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.4% annually over the last five years
2. Flat earnings per share over the last five years lagged its peers
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

Fortive’s stock price of $60.29 implies a valuation ratio of 19.5x forward P/E. If you’re considering FTV for your portfolio, see our FREE research report to learn more.

Stocks We Like More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.