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 three S&P 500 stocks to steer clear of and a few alternatives to consider.
Jabil (JBL)
Market Cap: $22.52 billion
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Are We Hesitant About JBL?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 10.1% annually over the last two years
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 1.6% annually
- Poor free cash flow margin of 3.1% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Jabil’s stock price of $208.02 implies a valuation ratio of 20.8x forward P/E. If you’re considering JBL for your portfolio, see our FREE research report to learn more.
Intercontinental Exchange (ICE)
Market Cap: $101.4 billion
Starting as an energy trading platform in 2000 before acquiring the iconic New York Stock Exchange in 2013, Intercontinental Exchange (NYSE: ICE) operates global financial exchanges, clearing houses, and provides data services and mortgage technology solutions to financial institutions and corporations.
Why Does ICE Worry Us?
- Incremental sales over the last five years were less profitable as its 8.6% annual earnings per share growth lagged its revenue gains
At $177.14 per share, Intercontinental Exchange trades at 24.3x forward P/E. Read our free research report to see why you should think twice about including ICE in your portfolio.
Truist Financial (TFC)
Market Cap: $60.33 billion
Born from the 2019 merger of BB&T and SunTrust in one of the largest banking combinations since the 2008 financial crisis, Truist Financial (NYSE: TFC) is a bank holding company that offers a wide range of financial services including consumer and commercial banking, wealth management, insurance, and lending solutions.
Why Is TFC Not Exciting?
- Net interest income stagnated over the last five years and signal the need for new growth strategies
- Net interest margin of 3% is well below other banks, signaling its loans aren’t very profitable
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.2% annually
Truist Financial is trading at $46.79 per share, or 1x forward P/B. Dive into our free research report to see why there are better opportunities than TFC.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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 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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