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 is one S&P 500 stock that is positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
Genuine Parts (GPC)
Market Cap: $13.39 billion
Largely targeting the professional customer, Genuine Parts (NYSE: GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Why Do We Think GPC Will Underperform?
- Annual sales growth of 3.1% over the last three years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Poor expense management has led to an operating margin of 4.5% that is below the industry average
Genuine Parts is trading at $97.83 per share, or 12.5x forward P/E. If you’re considering GPC for your portfolio, see our FREE research report to learn more.
Tyson Foods (TSN)
Market Cap: $21.1 billion
Started as a simple trucking business, Tyson Foods (NYSE: TSN) is one of the world’s largest producers of chicken, beef, and pork.
Why Are We Out on TSN?
- Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 7.1%
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 3.8% annually while its revenue grew
Tyson Foods’s stock price of $60.01 implies a valuation ratio of 13.5x forward P/E. Read our free research report to see why you should think twice about including TSN in your portfolio.
One Stock to Buy:
Monolithic Power Systems (MPWR)
Market Cap: $75.78 billion
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Will MPWR Beat the Market?
- Market share has increased this cycle as its 25.9% annual revenue growth over the last five years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.7% over the last five years outstripped its revenue performance
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
At $1,539 per share, Monolithic Power Systems trades at 61.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
