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. That said, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
Salesforce (CRM)
Market Cap: $192 billion
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Do We Think Twice About CRM?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 11.2% underwhelmed
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 10.4%
- Operating margin didn’t move over the last year, showing it couldn’t increase its efficiency
Salesforce is trading at $233.13 per share, or 4x forward price-to-sales. If you’re considering CRM for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
AutoZone (AZO)
Market Cap: $46.82 billion
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Why Is AZO a Top Pick?
- Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.4% growth over the past two years
- Highly efficient business model is illustrated by its impressive 18.7% operating margin
AutoZone’s stock price of $2,896 implies a valuation ratio of 16.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Accenture (ACN)
Market Cap: $112.4 billion
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Are We Positive on ACN?
- Solid 8.8% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Dominant market position is represented by its $73.1 billion in revenue and gives it fixed cost leverage when sales grow
- ROIC punches in at 35%, illustrating management’s expertise in identifying profitable investments
At $183.74 per share, Accenture trades at 13x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
