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 is one S&P 500 stock that could deliver good returns and two that could be in trouble.

Two Stocks to Sell:

Church & Dwight (CHD)

Market Cap: $24.51 billion

Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE: CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Why Are We Cautious About CHD?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Estimated sales growth of 1% for the next 12 months implies demand will slow from its three-year trend
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.9 percentage points

Church & Dwight is trading at $99.64 per share, or 26.4x forward P/E. Read our free research report to see why you should think twice about including CHD in your portfolio.

Quest (DGX)

Market Cap: $19.38 billion

Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics (NYSE: DGX) provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Why Do We Think Twice About DGX?

1. Weak requisition volumes over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 10.3 percentage points
3. Waning returns on capital imply its previous profit engines are losing steam

Quest’s stock price of $173.59 implies a valuation ratio of 17.6x forward P/E. Check out our free in-depth research report to learn more about why DGX doesn’t pass our bar.

One Stock to Watch:

Amgen (AMGN)

Market Cap: $155.7 billion

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Are We Fans of AMGN?

1. Solid 14.1% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. $34.13 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
3. Robust free cash flow margin of 31% gives it many options for capital deployment

At $287.65 per share, Amgen trades at 13.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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.