2 S&P 500 Stocks with Solid Fundamentals and 1 We Find Risky

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 are two S&P 500 stocks leading the market forward and one that may struggle.

One Stock to Sell:

Regeneron (REGN)

Market Cap: $61.34 billion

Founded by scientists who wanted to build a company where science could thrive, Regeneron Pharmaceuticals (NASDAQ:REGN) develops and commercializes medicines for serious diseases, with key products treating eye conditions, allergic diseases, cancer, and other disorders.

Why Are We Cautious About REGN?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 6.7% over the last two years was below our standards for the healthcare sector
2. Free cash flow margin dropped by 20.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Regeneron is trading at $602.50 per share, or 12.4x forward P/E. Dive into our free research report to see why there are better opportunities than REGN.

Two Stocks to Watch:

Stryker (SYK)

Market Cap: $112.4 billion

With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.

Why Does SYK Stand Out?

1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 9.2% over the past two years
2. Earnings per share grew by 12.2% annually over the last five years and easily exceeded the peer group average
3. Free cash flow margin increased by 4 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $294.51 per share, Stryker trades at 19.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Mastercard (MA)

Market Cap: $422.1 billion

Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE:MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.

Why Are We Bullish on MA?

1. Impressive 17% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Share repurchases over the last five years enabled its annual earnings per share growth of 23.1% to outpace its revenue gains
3. ROE punches in at 174%, illustrating management’s expertise in identifying profitable investments

Mastercard’s stock price of $479.66 implies a valuation ratio of 24.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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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.