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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that could deliver good returns and two that could be in trouble.
Two Stocks to Sell:
FactSet (FDS)
Market Cap: $8.62 billion
Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE: FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.
Why Does FDS Fall Short?
- Sales trends were unexciting over the last two years as its 5.8% annual growth was below the typical financials company
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 5.9% annually
FactSet’s stock price of $245.18 implies a valuation ratio of 12.1x forward P/E. If you’re considering FDS for your portfolio, see our FREE research report to learn more.
MetLife (MET)
Market Cap: $56.35 billion
Founded in 1863 by a group of New York businessmen during the Civil War era, MetLife (NYSE: MET) is a global financial services company that provides insurance, annuities, employee benefits, and asset management services to individuals and businesses worldwide.
Why Do We Think MET Will Underperform?
- Large revenue base constrains its growth potential, as seen in its unexciting 2.7% annualized increases in net premiums earned over the last five years fell below our expectations for the insurance sector
- Earnings per share lagged its peers over the last two years as they only grew by 10.8% annually
- Products and services are facing significant credit quality challenges during this cycle as book value per share has declined by 10.8% annually over the last five years
MetLife is trading at $87.18 per share, or 1.9x forward P/B. Read our free research report to see why you should think twice about including MET in your portfolio.
One Stock to Watch:
Colgate-Palmolive (CL)
Market Cap: $71.53 billion
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE: CL) is a consumer products company that focuses on personal, household, and pet products.
Why Is CL Interesting?
- Enormous revenue base of $20.8 billion provides significant negotiating leverage in retail partnerships
- Products command premium prices and lead to a best-in-class gross margin of 60.4%
- Strong free cash flow margin of 17.8% enables it to reinvest or return capital consistently
At $93.20 per share, Colgate-Palmolive trades at 24.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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.
