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 positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
Workday (WDAY)
Market Cap: $57.85 billion
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Does WDAY Give Us Pause?
- Average ARR growth of 13.8% over the last year has disappointed, suggesting it’s had a hard time winning long-term deals and renewals
- Estimated sales growth of 12.9% for the next 12 months implies demand will slow from its two-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $219.99 per share, Workday trades at 5.6x forward price-to-sales. Read our free research report to see why you should think twice about including WDAY in your portfolio.
Mettler-Toledo (MTD)
Market Cap: $28.9 billion
With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE: MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.
Why Are We Wary of MTD?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 1.4 percentage points
Mettler-Toledo’s stock price of $1,402 implies a valuation ratio of 31.9x forward P/E. Check out our free in-depth research report to learn more about why MTD doesn’t pass our bar.
One Stock to Watch:
Colgate-Palmolive (CL)
Market Cap: $62.93 billion
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE: CL) is a consumer products company that focuses on personal, household, and pet products.
Why Are We Fans of CL?
- Enormous revenue base of $20.1 billion provides significant negotiating leverage in retail partnerships
- Unique products and pricing power result in a best-in-class gross margin of 60.3%
- CL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Colgate-Palmolive is trading at $78.14 per share, or 20.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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