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 positioned to outperform and one best left off your watchlist.

One Stock to Sell:

Nasdaq (NDAQ)

Market Cap: $50.54 billion

Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.

Why Is NDAQ Not Exciting?

1. Performance over the past two years shows its incremental sales were less profitable, as its 9.2% annual earnings per share growth trailed its revenue gains

Nasdaq is trading at $88.77 per share, or 23.9x forward P/E. If you’re considering NDAQ for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Republic Services (RSG)

Market Cap: $65.83 billion

Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.

Why Are We Positive On RSG?

1. Annual revenue growth of 10.2% over the last five years beat the sector average and underscores the unique value of its offerings
2. Excellent operating margin of 18.9% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy

Republic Services’s stock price of $212.68 implies a valuation ratio of 29.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

NetApp (NTAP)

Market Cap: $22.94 billion

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Are We Fans of NTAP?

1. Business is winning new contracts that can potentially increase in value as its billings growth averaged 7.2% over the past two years
2. Adjusted operating margin expanded by 5.9 percentage points over the last five years as it scaled and became more efficient
3. NTAP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety

At $116 per share, NetApp trades at 13.9x forward P/E. Is now a good time to buy? Find out in our full 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-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

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.