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 are two S&P 500 stocks leading the market forward and one that may struggle.

One Stock to Sell:

M&T Bank (MTB)

Market Cap: $30.92 billion

Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.

Why Does MTB Give Us Pause?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 1.8% annually over the last two years
2. Estimated net interest income growth of 5.5% for the next 12 months implies demand will slow from its five-year trend
3. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 24.3 basis points (100 basis points = 1 percentage point)

M&T Bank is trading at $198.40 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including MTB in your portfolio.

Two Stocks to Buy:

Broadcom (AVGO)

Market Cap: $1.38 trillion

Originally the semiconductor division of Hewlett Packard, Broadcom (NASDAQ: AVGO) is a semiconductor conglomerate spanning wireless communications, networking, and data storage as well as infrastructure software focused on mainframes and cybersecurity.

Why Will AVGO Outperform?

1. Annual revenue growth of 27.6% over the last two years was superb and indicates its market share increased during this cycle
2. Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 75.8%
3. Strong free cash flow margin of 41.3% enables it to reinvest or return capital consistently

Broadcom’s stock price of $294.11 implies a valuation ratio of 40.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

UnitedHealth (UNH)

Market Cap: $276.1 billion

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

Why Is UNH a Good Business?

1. Enormous revenue base of $422.8 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
2. Projected revenue growth of 8.4% for the next 12 months suggests its momentum from the last two years will persist
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $304.72 per share, UnitedHealth trades at 14.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.