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. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Stocks to Sell:
AbbVie (ABBV)
Market Cap: $335.3 billion
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE:ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Are We Wary of ABBV?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 9.2 percentage points
- 8.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
AbbVie is trading at $189.98 per share, or 14.9x forward P/E. Check out our free in-depth research report to learn more about why ABBV doesn’t pass our bar.
West Pharmaceutical Services (WST)
Market Cap: $16.14 billion
Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.
Why Do We Think Twice About WST?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Efficiency has decreased over the last two years as its adjusted operating margin fell by 5.7 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
West Pharmaceutical Services’s stock price of $224.62 implies a valuation ratio of 35.1x forward P/E. Dive into our free research report to see why there are better opportunities than WST.
One Stock to Watch:
Match Group (MTCH)
Market Cap: $7.81 billion
Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ:MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.
Why Do We Like MTCH?
- Monetization efforts are paying off as its average revenue per user has grown by 9.5% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $32.08 per share, Match Group trades at 6.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our 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.