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. That said, here is one S&P 500 stock that is positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
Workday (WDAY)
Market Cap: $39.6 billion
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Is WDAY Not Exciting?
- 14.1% annual revenue growth over the last two years was slower than its software peers
- Estimated sales growth of 10.9% for the next 12 months implies demand will slow from its two-year trend
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
Workday is trading at $160.15 per share, or 3.7x forward price-to-sales. If you’re considering WDAY for your portfolio, see our FREE research report to learn more.
Masco (MAS)
Market Cap: $14.04 billion
Headquartered just outside of Detroit, MI, Masco (NYSE: MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.
Why Is MAS Risky?
- 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
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.6%
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $71.01 per share, Masco trades at 16.2x forward P/E. Dive into our free research report to see why there are better opportunities than MAS.
One Stock to Buy:
Expand Energy (EXE)
Market Cap: $21.77 billion
Rebranded from Chesapeake Energy in 2024 after emerging from bankruptcy, Expand Energy (NASDAQ: EXE) produces natural gas, oil, and natural gas liquids from underground shale formations in Louisiana, Pennsylvania, Ohio, and West Virginia.
Why Should You Buy EXE?
- Impressive 19.4% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Enormous revenue base of $12.66 billion provides significant leverage in supplier negotiations
- EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
Expand Energy’s stock price of $94.69 implies a valuation ratio of 11.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
