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. Keeping that in mind, here are three S&P 500 stocks that don’t make the cut and some better choices instead.
Workday (WDAY)
Market Cap: $59.53 billion
Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ: WDAY) provides cloud-based software for organizations to manage and plan finance and human resources.
Why Does WDAY Fall Short?
- 17.2% annual revenue growth over the last three years was slower than its software peers
Workday’s stock price of $224.25 implies a valuation ratio of 6.1x forward price-to-sales. Check out our free in-depth research report to learn more about why WDAY doesn’t pass our bar.
Constellation Brands (STZ)
Market Cap: $30.03 billion
With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.
Why Are We Hesitant About STZ?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Sales are projected to tank by 6.8% over the next 12 months as demand evaporates
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 31.8 percentage points
Constellation Brands is trading at $170.37 per share, or 13.2x forward P/E. Read our free research report to see why you should think twice about including STZ in your portfolio.
Mondelez (MDLZ)
Market Cap: $80.47 billion
Founded as Nabisco in 1903, Mondelez (NASDAQ: MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Are We Cautious About MDLZ?
- Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.7 percentage points
- Free cash flow margin shrank by 2.3 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
At $62.26 per share, Mondelez trades at 19.3x forward P/E. To fully understand why you should be careful with MDLZ, check out our full research report (it’s free).
Stocks We Like More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum 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 Tecnoglass (+1,754% 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
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