
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.
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 leading the market forward and two that may struggle.
Two stocks to sell:
Lowe's (LOW)
Market cap: $128.7 billion
Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.
Why Does LOW Worry Us?
- Sales tumbled by 1% annually over the last three years, showing consumer trends are working against it
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Gross margin of 33.2% is below its competitors, leaving less money for marketing and promotions
At $228.57 per share, Lowe's trades at 17.1x forward P/E. Check out our free in-depth research report to learn more about why LOW doesn’t pass our bar.
Old Dominion Freight Line (ODFL)
Market cap: $37.2 billion
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ: ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Why Are We Cautious About ODFL?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Old Dominion Freight Line is trading at $179.35 per share, or 26.8x forward P/E. Dive into our free research report to see why there are better opportunities than ODFL.
One stock to buy:
McKesson (MCK)
Market cap: $124.7 billion
With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE: MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.
What Makes MCK Stand Out?
- Solid 12.6% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Massive revenue base of $418.8 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
McKesson’s stock price of $1,040 implies a valuation ratio of 20.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-quality stocks for all market conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.