1 S&P 500 Stock with Exciting Potential and 2 We Avoid

September 17, 2025 at 00:33 AM EDT

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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.

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 that may struggle.

Two Stocks to Sell:

Universal Health Services (UHS)

Market Cap: $11.85 billion

With a network spanning 39 states and three countries, Universal Health Services (NYSE: UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.

Why Are We Cautious About UHS?

Poor comparable store sales performance over the past two years indicates it’s having trouble bringing new patients into its facilities
Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.3 percentage points
Low free cash flow margin of 4.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Universal Health Services’s stock price of $186.26 implies a valuation ratio of 9.2x forward P/E. If you’re considering UHS for your portfolio, see our FREE research report to learn more.

Aflac (AFL)

Market Cap: $57.56 billion

Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE: AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.

Why Is AFL Risky?

Insurance policy sales contracted this cycle as net premiums earned decreased by 7.8% annually over the last four years
Pre-tax profit margin declined by 9.7 percentage points over the last two years as its sales cratered
Earnings per share lagged its peers over the last two years as they only grew by 13% annually

At $107.63 per share, Aflac trades at 2.2x forward P/B. Read our free research report to see why you should think twice about including AFL in your portfolio.

One Stock to Buy:

Quanta (PWR)

Market Cap: $56.36 billion

A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.

Why Will PWR Outperform?

Sales pipeline is in good shape as its backlog averaged 20.3% growth over the past two years
Projected revenue growth of 12.8% for the next 12 months suggests its momentum from the last two years will persist
Earnings per share have massively outperformed its peers over the last two years, increasing by 25.1% annually

Quanta is trading at $379 per share, or 33.8x 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

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 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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