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?
- 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
- 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
- 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?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Smaller revenue base of $1.22 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- 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?
- 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
- Annual net interest income growth of 4.5% over the last five years was below our standards for the banking sector
- 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
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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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