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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are two S&P 500 stocks that could deliver good returns and one that could be in trouble.
One Healthcare Stock to Sell:
Viatris (VTRS)
Market Cap: $10.33 billion
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Are We Out on VTRS?
- Annual sales declines of 4.8% for the past two years show its products and services struggled to connect with the market during this cycle
- Projected sales decline of 6.5% over the next 12 months indicates demand will continue deteriorating
- Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 9.6% annually
Viatris’s stock price of $8.52 implies a valuation ratio of 3.4x forward P/E. To fully understand why you should be careful with VTRS, check out our full research report (it’s free).
Two Healthcare Stocks to Watch:
Stryker (SYK)
Market Cap: $144.4 billion
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Does SYK Catch Our Eye?
- Average organic revenue growth of 10.4% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- $23.22 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
- Free cash flow margin of 14.6% is higher than many in the industry, giving it breathing room and optionality
Stryker is trading at $378.22 per share, or 27.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Boston Scientific (BSX)
Market Cap: $155.2 billion
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Do We Watch BSX?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 14.9% over the past two years
- Projected revenue growth of 14.5% for the next 12 months suggests its momentum from the last two years will persist
- Additional sales over the last five years increased its profitability as the 12.3% annual growth in its earnings per share outpaced its revenue
At $104.99 per share, Boston Scientific trades at 35.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks That Overcame Trump’s 2018 Tariffs
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
