2 S&P 500 Stocks Worth Your Attention and 1 We Turn Down

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

One Stock to Sell:

Royal Caribbean (RCL)

Market Cap: $78.1 billion

Established in 1968, Royal Caribbean Cruises (NYSE:RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.

Why Do We Think RCL Will Underperform?

1. Performance surrounding its passenger cruise days has lagged its peers
2. Low free cash flow margin of 8.8% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $292.50 per share, Royal Caribbean trades at 15.3x forward P/E. If you’re considering RCL for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Allegion (ALLE)

Market Cap: $13.8 billion

Allegion plc (NYSE:ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.

Why Do We Like ALLE?

1. Highly efficient business model is illustrated by its impressive 19.8% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
2. Free cash flow margin increased by 6.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. ROIC punches in at 21.9%, illustrating management’s expertise in identifying profitable investments

Allegion is trading at $162.40 per share, or 17.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Vulcan Materials (VMC)

Market Cap: $35.77 billion

Founded in 1909, Vulcan Materials (NYSE:VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Why Could VMC Be a Winner?

1. Annual revenue growth of 10.6% over the last five years was superb and indicates its market share increased during this cycle
2. Operating margin expanded by 6.2 percentage points over the last five years as it scaled and became more efficient
3. Free cash flow margin grew by 6.8 percentage points over the last five years, giving the company more chips to play with

Vulcan Materials’s stock price of $276.40 implies a valuation ratio of 27.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 meet 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.