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 two S&P 500 stocks positioned to outperform and one best left off your watchlist.
One Healthcare Stock to Sell:
BD (BDX)
Market Cap: $55.18 billion
With a history dating back to 1897 and a presence in virtually every hospital around the globe, Becton Dickinson (NYSE: BDX) develops and manufactures medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions and professionals worldwide.
Why Does BDX Fall Short?
- Sizable revenue base leads to growth challenges as its 5.5% annual revenue increases over the last five years fell short of other healthcare companies
- Free cash flow margin shrank by 10.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $192.53 per share, BD trades at 13.3x forward P/E. To fully understand why you should be careful with BDX, check out our full research report (it’s free for active Edge members).
Two Healthcare Stocks to Watch:
Amgen (AMGN)
Market Cap: $159.1 billion
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Why Are We Positive On AMGN?
- 14.6% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Economies of scale give it some operating leverage when demand rises
- AMGN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Amgen is trading at $295.80 per share, or 14.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Boston Scientific (BSX)
Market Cap: $142.1 billion
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Should BSX Be on Your Watchlist?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 15.6% over the past two years
- Projected revenue growth of 13.5% for the next 12 months suggests its momentum from the last two years will persist
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 18.4% over the last five years outstripped its revenue performance
Boston Scientific’s stock price of $96 implies a valuation ratio of 30.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Tecnoglass (+1,754% 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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