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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Stocks to Sell:
Generac (GNRC)
Market Cap: $9.64 billion
With its name deriving from a combination of “generating” and “AC”, Generac (NYSE: GNRC) offers generators and other power products for residential, industrial, and commercial use.
Why Does GNRC Worry Us?
- Annual revenue growth of 4.7% over the last two years was below our standards for the industrials sector
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
At $164.50 per share, Generac trades at 20.2x forward P/E. Read our free research report to see why you should think twice about including GNRC in your portfolio.
Northern Trust (NTRS)
Market Cap: $25.05 billion
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Is NTRS Not Exciting?
- 4.7% annual revenue growth over the last five years was slower than its financials peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 5.3% annually
Northern Trust’s stock price of $130.68 implies a valuation ratio of 15.1x forward P/E. Dive into our free research report to see why there are better opportunities than NTRS.
One Stock to Watch:
Colgate-Palmolive (CL)
Market Cap: $64.42 billion
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE: CL) is a consumer products company that focuses on personal, household, and pet products.
Why Could CL Be a Winner?
- Products command premium prices and result in a best-in-class gross margin of 60.2%
- CL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities
Colgate-Palmolive is trading at $79.51 per share, or 21x 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
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 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 Exlservice (+354% 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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