The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.

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 is leading the market forward and two that could be in trouble.

Two Stocks to Sell:

Verizon (VZ)

Market Cap: $165.8 billion

Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE: VZ) is a telecom giant providing a range of communications and internet services.

Why Do We Think VZ Will Underperform?

1. Customer additions have disappointed over the past two years, indicating the company’s value proposition may not be resonating
2. Projected sales growth of 1.6% for the next 12 months suggests sluggish demand
3. Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew

Verizon’s stock price of $39.64 implies a valuation ratio of 8.3x forward P/E. Dive into our free research report to see why there are better opportunities than VZ.

M&T Bank (MTB)

Market Cap: $27.8 billion

Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.

Why Is MTB Not Exciting?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.4% annually over the last two years
2. Estimated net interest income growth of 4.2% for the next 12 months implies demand will slow from its five-year trend
3. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 26 basis points (100 basis points = 1 percentage point)

M&T Bank is trading at $184.24 per share, or 1x forward P/B. Read our free research report to see why you should think twice about including MTB in your portfolio.

One Stock to Watch:

Regions Financial (RF)

Market Cap: $21.37 billion

Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE: RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.

Why Do We Like RF?

1. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
2. Balance sheet strength has increased this cycle as its 21.4% annual tangible book value per share growth over the last two years was exceptional
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $24.34 per share, Regions Financial trades at 1.2x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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

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