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 may struggle.

Two Stocks to Sell:

Clorox (CLX)

Market Cap: $15.31 billion

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE: CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Why Does CLX Fall Short?

1. Sales were flat over the last three years, indicating it’s failed to expand its business
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. Estimated sales decline of 8.3% for the next 12 months implies an even more challenging demand environment

Clorox’s stock price of $125 implies a valuation ratio of 19.7x forward P/E. To fully understand why you should be careful with CLX, check out our full research report (it’s free).

Citizens Financial Group (CFG)

Market Cap: $20.59 billion

Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE: CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.

Why Does CFG Worry Us?

1. Net interest income trends were unexciting over the last five years as its 4% annual growth was below the typical bank company
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 36.7 basis points (100 basis points = 1 percentage point)
3. Sales were less profitable over the last two years as its earnings per share fell by 16.4% annually, worse than its revenue declines

At $47.60 per share, Citizens Financial Group trades at 0.9x forward P/B. If you’re considering CFG for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Cintas (CTAS)

Market Cap: $90.71 billion

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Why Do We Love CTAS?

1. Annual revenue growth of 8.3% over the last two years beat the sector average and underscores the unique value of its offerings
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.7% exceeded its revenue gains over the last five years
3. Robust free cash flow margin of 16.5% gives it many options for capital deployment

Cintas is trading at $225.99 per share, or 46.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even 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.

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