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 is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

Conagra (CAG)

Market Cap: $10.31 billion

Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.

Why Do We Think CAG Will Underperform?

1. Shrinking unit sales over the past two years suggest it might have to lower prices to stimulate growth
2. Estimated sales decline of 2.4% for the next 12 months implies a challenging demand environment
3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 7.9 percentage points

Conagra’s stock price of $21.60 implies a valuation ratio of 8.9x forward P/E. To fully understand why you should be careful with CAG, check out our full research report (it’s free).

Estée Lauder (EL)

Market Cap: $26.83 billion

Named after its founder, who was an entrepreneurial woman from New York with a passion for skincare, Estée Lauder (NYSE: EL) is a one-stop beauty shop with products in skincare, fragrance, makeup, sun protection, and men’s grooming.

Why Do We Steer Clear of EL?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Inability to adjust its cost structure while its revenue declined over the last year led to a 12.1 percentage point drop in the company’s operating margin
3. Sales were less profitable over the last three years as its earnings per share fell by 35.3% annually, worse than its revenue declines

At $74 per share, Estée Lauder trades at 34.2x forward P/E. If you’re considering EL for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Quanta (PWR)

Market Cap: $53.62 billion

A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Are We Backing PWR?

1. Demand is greater than supply as the company’s 23.1% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
2. Projected revenue growth of 10.7% for the next 12 months suggests its momentum from the last two years will persist
3. Earnings per share grew by 22.4% annually over the last two years and trumped its peers

Quanta is trading at $357.25 per share, or 34x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 6 Stocks for this week. 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