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:
Teradyne (TER)
Market Cap: $50.26 billion
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Is TER Not Exciting?
- Muted 3.4% annual revenue growth over the last five years shows its demand lagged behind its semiconductor peers
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 4.1% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.7 percentage points
At $322.25 per share, Teradyne trades at 50.4x forward P/E. Read our free research report to see why you should think twice about including TER in your portfolio.
C.H. Robinson Worldwide (CHRW)
Market Cap: $20.01 billion
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ: CHRW) offers freight transportation and logistics services.
Why Does CHRW Fall Short?
- Sales tumbled by 1.2% annually over the last five years, showing market trends are working against its favor during this cycle
- High input costs result in an inferior gross margin of 7.5% that must be offset through higher volumes
- Eroding returns on capital suggest its historical profit centers are aging
C.H. Robinson Worldwide’s stock price of $169.74 implies a valuation ratio of 25.5x forward P/E. If you’re considering CHRW for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Uber (UBER)
Market Cap: $152.8 billion
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Are We Positive On UBER?
- Monthly Active Platform Consumers have grown by 15.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 60.8% over the last three years outstripped its revenue performance
- Free cash flow margin expanded by 15.3 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Uber is trading at $75.06 per share, or 13.6x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
