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 positioned to outperform and one best left off your watchlist.
One Stock to Sell:
HP (HPQ)
Market Cap: $22.79 billion
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Should You Dump HPQ?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.8% annually while its revenue grew
- 4.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
HP’s stock price of $24.78 implies a valuation ratio of 8x forward P/E. If you’re considering HPQ for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Qualcomm (QCOM)
Market Cap: $187.6 billion
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Why Could QCOM Be a Winner?
- Annual revenue growth of 15.3% over the past five years was outstanding, reflecting market share gains this cycle
- QCOM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
- Industry-leading 47% return on capital demonstrates management’s skill in finding high-return investments
Qualcomm is trading at $175.55 per share, or 14.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Blackstone (BX)
Market Cap: $119 billion
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE: BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Why Are We Backing BX?
- Annual revenue growth of 19.2% over the last five years was superb and indicates its market share increased during this cycle
- Fee-related earnings improved by 22.7% annually over the last five years as it eliminated redundant costs
- Earnings per share grew by 19.7% annually over the last five years and easily exceeded the peer group average
At $152.51 per share, Blackstone trades at 24.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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.
