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.

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 that could be in trouble.

One Stock to Sell:

Hasbro (HAS)

Market Cap: $9.62 billion

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Why Are We Out on HAS?

1. Products and services aren't resonating with the market as its revenue declined by 3.5% annually over the last five years
2. Suboptimal cost structure is highlighted by its history of operating margin losses
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Hasbro is trading at $68.63 per share, or 16.4x forward P/E. Dive into our free research report to see why there are better opportunities than HAS.

Two Stocks to Watch:

Monolithic Power Systems (MPWR)

Market Cap: $32.84 billion

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Why Is MPWR a Good Business?

1. Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle
2. Strong free cash flow margin of 29.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
3. Industry-leading 45.7% return on capital demonstrates management’s skill in finding high-return investments

At $689.50 per share, Monolithic Power Systems trades at 40x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Zoetis (ZTS)

Market Cap: $69.97 billion

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Is ZTS on Our Radar?

1. Constant currency growth averaged 9.1% over the past two years, showing it can expand globally regardless of the macroeconomic environment
2. Robust free cash flow margin of 21.4% gives it many options for capital deployment
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Zoetis’s stock price of $157.75 implies a valuation ratio of 25.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. 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-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