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 is one S&P 500 stock that is leading the market forward and two best left off your watchlist.

Two Stocks to Sell:

CarMax (KMX)

Market Cap: $9.21 billion

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.

Why Do We Think KMX Will Underperform?

1. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
2. Gross margin of 10.8% is below its competitors, leaving less money for marketing and promotions
3. High net-debt-to-EBITDA ratio could force the company to raise capital at unfavorable terms if market conditions deteriorate

CarMax is trading at $61.89 per share, or 15.6x forward P/E. Check out our free in-depth research report to learn more about why KMX doesn’t pass our bar.

Invesco (IVZ)

Market Cap: $9.76 billion

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Why Is IVZ Risky?

1. Sales tumbled by 2.4% annually over the last five years, showing market trends are working against its favor during this cycle
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Low return on equity reflects management’s struggle to allocate funds effectively

At $22.03 per share, Invesco trades at 11.4x forward P/E. To fully understand why you should be careful with IVZ, check out our full research report (it’s free).

One Stock to Watch:

Jack Henry (JKHY)

Market Cap: $11.9 billion

Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ: JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.

Why Should JKHY Be on Your Watchlist?

1. Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 11.5% outpaced its revenue gains
2. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Jack Henry’s stock price of $163.26 implies a valuation ratio of 25.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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.

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.