3 S&P 500 Stocks with Warning Signs

TPR Cover Image

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.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here are three S&P 500 stocks to steer clear of and a few alternatives to consider.

Tapestry (TPR)

Market Cap: $22.44 billion

Originally founded as Coach, Tapestry (NYSE: TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.

Why Are We Hesitant About TPR?

  1. Lackluster 1.6% annual revenue growth over the last two years indicates the company is losing ground to competitors
  2. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
  3. Projected sales growth of 3.3% for the next 12 months suggests sluggish demand

At $108.03 per share, Tapestry trades at 21x forward P/E. Check out our free in-depth research report to learn more about why TPR doesn’t pass our bar.

Norwegian Cruise Line (NCLH)

Market Cap: $11.42 billion

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.

Why Does NCLH Fall Short?

  1. Sluggish trends in its passenger cruise days suggest customers aren’t adopting its solutions as quickly as the company hoped
  2. Cash-burning history makes us doubt the long-term viability of its business model
  3. Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders

Norwegian Cruise Line’s stock price of $25.42 implies a valuation ratio of 11.4x forward P/E. If you’re considering NCLH for your portfolio, see our FREE research report to learn more.

Danaher (DHR)

Market Cap: $141.2 billion

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Does DHR Give Us Pause?

  1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last two years
  2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
  3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.9 percentage points

Danaher is trading at $197 per share, or 24.4x forward P/E. Dive into our free research report to see why there are better opportunities than DHR.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.