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 is one S&P 500 stock that could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
Nike (NKE)
Market Cap: $112.8 billion
Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Why Do We Think NKE Will Underperform?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Sales are projected to tank by 1.3% over the next 12 months as its demand continues evaporating
- Eroding returns on capital suggest its historical profit centers are aging
Nike is trading at $76.61 per share, or 44.7x forward P/E. If you’re considering NKE for your portfolio, see our FREE research report to learn more.
Bio-Techne (TECH)
Market Cap: $8.34 billion
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Why Do We Think Twice About TECH?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Revenue base of $1.21 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Free cash flow margin shrank by 8.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Bio-Techne’s stock price of $53.18 implies a valuation ratio of 25.5x forward P/E. Dive into our free research report to see why there are better opportunities than TECH.
One Stock to Watch:
Abbott Laboratories (ABT)
Market Cap: $233.3 billion
With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE: ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.
Why Is ABT on Our Radar?
- Scale advantages are evident in its $42.34 billion revenue base, which provides operating leverage when demand is strong
- Robust free cash flow margin of 16.6% gives it many options for capital deployment
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $134.23 per share, Abbott Laboratories trades at 25.2x forward P/E. Is now the time to initiate a position? Find out in our full 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 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
