The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are three S&P 500 stocks to avoid and some better alternatives instead.

PACCAR (PCAR)

Market Cap: $66.94 billion

Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.

Why Do We Think Twice About PCAR?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 10% annually over the last two years
2. Gross margin of 16.5% reflects its high production costs
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

PACCAR’s stock price of $127.21 implies a valuation ratio of 22.8x forward P/E. Dive into our free research report to see why there are better opportunities than PCAR.

Agilent (A)

Market Cap: $32.52 billion

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE: A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Why Are We Cautious About A?

1. Sales trends were unexciting over the last two years as its 2.4% annual growth was below the typical healthcare company
2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
3. 5.8 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

Agilent is trading at $115.76 per share, or 18.8x forward P/E. If you’re considering A for your portfolio, see our FREE research report to learn more.

Revvity (RVTY)

Market Cap: $10.04 billion

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Do We Pass on RVTY?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Adjusted operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
3. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

At $89.79 per share, Revvity trades at 16.8x forward P/E. Read our free research report to see why you should think twice about including RVTY in your portfolio.

Stocks We Like More

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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.