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.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. 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:

Constellation Brands (STZ)

Market Cap: $26.03 billion

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Why Are We Hesitant About STZ?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Projected sales decline of 6.2% for the next 12 months points to an even tougher demand environment ahead
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

At $149.18 per share, Constellation Brands trades at 12.5x forward P/E. If you’re considering STZ for your portfolio, see our FREE research report to learn more.

Quest (DGX)

Market Cap: $20.2 billion

Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics (NYSE: DGX) provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Why Are We Wary of DGX?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 5.3% for the last five years
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 9.7 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Quest is trading at $182.07 per share, or 17.6x forward P/E. Dive into our free research report to see why there are better opportunities than DGX.

One Stock to Watch:

Intuitive Surgical (ISRG)

Market Cap: $194 billion

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Does ISRG Catch Our Eye?

1. Products are reaching more customers as its system placement averaged 12.7% growth over the past two years
2. Projected revenue growth of 14.2% for the next 12 months suggests its momentum from the last two years will persist
3. Earnings per share grew by 20.9% annually over the last five years and trumped its peers

Intuitive Surgical’s stock price of $549.35 implies a valuation ratio of 60.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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-micro-cap company Tecnoglass (+1,754% 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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