While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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:
Expeditors (EXPD)
Market Cap: $21.74 billion
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Why Does EXPD Fall Short?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.3% over the last two years was below our standards for the industrials sector
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.4%
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $162.21 per share, Expeditors trades at 27.8x forward P/E. Dive into our free research report to see why there are better opportunities than EXPD.
Assurant (AIZ)
Market Cap: $12.08 billion
With roots dating back to 1892 when it was founded by a Civil War veteran, Assurant (NYSE: AIZ) provides specialized insurance products and services that protect major consumer purchases like mobile devices, vehicles, homes, and appliances.
Why Are We Cautious About AIZ?
- Annual sales growth of 5.1% over the last five years lagged behind its insurance peers as its large revenue base made it difficult to generate incremental demand
- Large revenue base constrains its growth potential, as seen in its unexciting 4.6% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
- Annual book value per share growth of 2.7% over the last five years lagged behind its insurance peers as its large balance sheet made it difficult to generate incremental capital growth
Assurant’s stock price of $241.10 implies a valuation ratio of 2.1x forward P/B. To fully understand why you should be careful with AIZ, check out our full research report (it’s free).
One Stock to Watch:
Republic Services (RSG)
Market Cap: $66.23 billion
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Do We Like RSG?
- Annual revenue growth of 10.2% over the last five years beat the sector average and underscores the unique value of its offerings
- Highly efficient business model is illustrated by its impressive 18.9% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
- RSG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
Republic Services is trading at $213.68 per share, or 30.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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.
