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. That said, here are two S&P 500 stocks that could deliver good returns and one that may struggle.

One Stock to Sell:

IQVIA (IQV)

Market Cap: $37.57 billion

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

Why Are We Wary of IQV?

1. Sizable revenue base leads to growth challenges as its 3.5% annual revenue increases over the last two years fell short of other healthcare companies
2. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
3. Free cash flow margin shrank by 3.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

IQVIA is trading at $220.59 per share, or 17.7x forward P/E. If you’re considering IQV for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Lululemon (LULU)

Market Cap: $20.24 billion

Originally serving yogis and hockey players, Lululemon (NASDAQ: LULU) is a designer, distributor, and retailer of athletic apparel for men and women.

Why Are We Bullish on LULU?

1. Same-store sales growth averaged 5.3% over the past two years, showing it’s bringing new and repeat shoppers into its stores
2. Differentiated product assortment leads to a best-in-class gross margin of 58.8%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $170.80 per share, Lululemon trades at 13.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Wabtec (WAB)

Market Cap: $34.86 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Are We Positive On WAB?

1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.6% exceeded its revenue gains over the last two years
3. Robust free cash flow margin of 11.6% gives it many options for capital deployment

Wabtec’s stock price of $204.05 implies a valuation ratio of 20.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.