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 are three S&P 500 stocks to steer clear of and a few alternatives to consider.
Live Nation (LYV)
Market Cap: $38.75 billion
Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Why Are We Out on LYV?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.6% over the last two years was below our standards for the consumer discretionary sector
- Poor expense management has led to an operating margin of 3.6% that is below the industry average
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.5 percentage points
At $165.89 per share, Live Nation trades at 125.6x forward P/E. To fully understand why you should be careful with LYV, check out our full research report (it’s free).
Veralto (VLTO)
Market Cap: $21.13 billion
Spun off from Danaher in 2023, Veralto (NYSE: VLTO) provides water analytics and treatment solutions.
Why Are We Wary of VLTO?
- 4.4% annual revenue growth over the last four years was slower than its industrials peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.5%
Veralto is trading at $86.07 per share, or 20.1x forward P/E. Dive into our free research report to see why there are better opportunities than VLTO.
Fortive (FTV)
Market Cap: $18.39 billion
Taking its name from the Latin root of "strong", Fortive (NYSE: FTV) manufactures products and develops industrial software for numerous industries.
Why Should You Sell FTV?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 2.4% annually over the last five years
- Flat earnings per share over the last five years lagged its peers
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
Fortive’s stock price of $60.29 implies a valuation ratio of 19.5x forward P/E. If you’re considering FTV for your portfolio, see our FREE research report to learn more.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
