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 is positioned to outperform and two that could be in trouble.

Two Stocks to Sell:

Textron (TXT)

Market Cap: $14.06 billion

Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.

Why Is TXT Not Exciting?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 3% for the last two years
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. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.6 percentage points

At $79.19 per share, Textron trades at 12x forward P/E. Read our free research report to see why you should think twice about including TXT in your portfolio.

CME Group (CME)

Market Cap: $96.59 billion

Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ: CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.

Why Are We Cautious About CME?

1. Annual revenue growth of 5.4% over the last five years was below our standards for the financials sector
2. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 9.8% annually

CME Group is trading at $268.30 per share, or 23.6x forward P/E. Dive into our free research report to see why there are better opportunities than CME.

One Stock to Buy:

Cintas (CTAS)

Market Cap: $73.99 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 Are We Bullish on CTAS?

1. Solid 8.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Share repurchases over the last five years enabled its annual earnings per share growth of 15.9% to outpace its revenue gains
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Cintas’s stock price of $185.91 implies a valuation ratio of 37.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 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-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

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