While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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 could be in trouble.
Two Stocks to Sell:
Charter (CHTR)
Market Cap: $28.75 billion
Operating as Spectrum, Charter (NASDAQ: CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.
Why Do We Think Twice About CHTR?
- Performance surrounding its internet subscribers has lagged its peers
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $220 per share, Charter trades at 0.6x forward price-to-sales. Check out our free in-depth research report to learn more about why CHTR doesn’t pass our bar.
Delta (DAL)
Market Cap: $37.95 billion
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Are We Hesitant About DAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.9%
- Poor free cash flow margin of 3.6% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Delta is trading at $57.51 per share, or 8.5x forward P/E. Dive into our free research report to see why there are better opportunities than DAL.
One Stock to Watch:
Cardinal Health (CAH)
Market Cap: $45.2 billion
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Could CAH Be a Winner?
- Dominant market position is represented by its $234.3 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Estimated revenue growth of 12.4% for the next 12 months implies demand will accelerate from its two-year trend
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 9.4% annually
Cardinal Health’s stock price of $189.93 implies a valuation ratio of 19.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.
Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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.
