3 S&P 500 Stocks That Concern Us

August 04, 2025 at 00:35 AM EDT

AKAM Cover Image

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 are three S&P 500 stocks to avoid and some better alternatives instead.

Akamai (AKAM)

Market Cap: $10.87 billion

Founded in 1999 by two engineers from MIT, Akamai (NASDAQ: AKAM) provides software for organizations to efficiently deliver web content to their customers.

Why Do We Pass on AKAM?

Muted 4.5% annual revenue growth over the last three years shows its demand lagged behind its software peers
Sky-high servicing costs result in an inferior gross margin of 59.1% that must be offset through increased usage
Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

Akamai’s stock price of $74.06 implies a valuation ratio of 2.7x forward price-to-sales. To fully understand why you should be careful with AKAM, check out our full research report (it’s free).

Electronic Arts (EA)

Market Cap: $39.3 billion

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ: EA) is one of the world’s largest video game publishers.

Why Do We Think Twice About EA?

1.2% annual revenue growth over the last three years was slower than its consumer internet peers
Anticipated sales growth of 2.1% for the next year implies demand will be shaky
Efficiency has decreased over the last few years as its EBITDA margin fell by 6.1 percentage points

At $157.67 per share, Electronic Arts trades at 13.1x forward EV/EBITDA. Read our free research report to see why you should think twice about including EA in your portfolio.

Vulcan Materials (VMC)

Market Cap: $36.33 billion

Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Why Does VMC Give Us Pause?

Flat sales over the last two years suggest it must find different ways to grow during this cycle
Demand for its offerings was relatively low as its number of tons shipped has underwhelmed
Gross margin of 25% is below its competitors, leaving less money to invest in areas like marketing and R&D

Vulcan Materials is trading at $274.94 per share, or 30.9x forward P/E. If you’re considering VMC for your portfolio, see our FREE research report to learn more.

Stocks We Like More

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3 S&P 500 Stocks That Concern Us

Akamai (AKAM)

Electronic Arts (EA)

Vulcan Materials (VMC)

Stocks We Like More

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