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. Keeping that in mind, here are three S&P 500 stocks that don’t make the cut and some better choices instead.

Parker-Hannifin (PH)

Market Cap: $96.96 billion

Founded in 1917, Parker Hannifin (NYSE: PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.

Why Are We Wary of PH?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2% over the last two years was below our standards for the industrials sector
2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
3. Estimated sales growth of 4.3% for the next 12 months is soft and implies weaker demand

Parker-Hannifin is trading at $766.20 per share, or 26.3x forward P/E. Read our free research report to see why you should think twice about including PH in your portfolio.

Bio-Techne (TECH)

Market Cap: $10.29 billion

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Why Should You Dump TECH?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Smaller revenue base of $1.22 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Free cash flow margin shrank by 12 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

At $65.09 per share, Bio-Techne trades at 32.9x forward P/E. Dive into our free research report to see why there are better opportunities than TECH.

Citizens Financial Group (CFG)

Market Cap: $21.99 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 Do We Think Twice About CFG?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.2% annually over the last two years
2. Annual net interest income growth of 4.5% over the last five years was below our standards for the banking sector
3. Costs have risen faster than its revenue over the last five years, causing its efficiency ratio to worsen by 9.4 percentage points

Citizens Financial Group’s stock price of $51.38 implies a valuation ratio of 0.9x forward P/B. Check out our free in-depth research report to learn more about why CFG doesn’t pass our bar.

Stocks We Like 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 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 Kadant (+351% 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

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.