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 may struggle.
Two Stocks to Sell:
Genuine Parts (GPC)
Market Cap: $18.12 billion
Largely targeting the professional customer, Genuine Parts (NYSE: GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Why Are We Wary of GPC?
- Annual sales growth of 4% over the last three years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Free cash flow margin dropped by 3.3 percentage points over the last year, implying the company became more capital intensive as competition picked up
Genuine Parts’s stock price of $130.80 implies a valuation ratio of 15.8x forward P/E. Dive into our free research report to see why there are better opportunities than GPC.
D.R. Horton (DHI)
Market Cap: $46.33 billion
One of the largest homebuilding companies in the U.S., D.R. Horton (NYSE: DHI) builds a variety of new construction homes across multiple markets.
Why Does DHI Worry Us?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 15.5% declines over the past two years
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
D.R. Horton is trading at $158.67 per share, or 14.1x forward P/E. Read our free research report to see why you should think twice about including DHI in your portfolio.
One Stock to Buy:
Cencora (COR)
Market Cap: $65.89 billion
Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE: COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.
Why Will COR Outperform?
- Massive revenue base of $321.3 billion gives it meaningful leverage when negotiating reimbursement rates
- Share buybacks catapulted its annual earnings per share growth to 15.1%, which outperformed its revenue gains over the last five years
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $340.10 per share, Cencora trades at 19.1x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum 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-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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