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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here are three S&P 500 stocks to steer clear of and a few alternatives to consider.
Align Technology (ALGN)
Market Cap: $12.64 billion
Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.
Why Are We Wary of ALGN?
- Annual revenue growth of 2.2% over the last two years was below our standards for the healthcare sector
- Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 5.3 percentage points
- Eroding returns on capital suggest its historical profit centers are aging
Align Technology is trading at $177.33 per share, or 16x forward P/E. Dive into our free research report to see why there are better opportunities than ALGN.
Northern Trust (NTRS)
Market Cap: $25.57 billion
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Are We Cautious About NTRS?
- Sales trends were unexciting over the last five years as its 5.8% annual growth was below the typical financials company
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.3% annually
At $136.16 per share, Northern Trust trades at 13.8x forward P/E. Check out our free in-depth research report to learn more about why NTRS doesn’t pass our bar.
Invesco (IVZ)
Market Cap: $10.69 billion
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Why Should You Sell IVZ?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Flat earnings per share over the last five years underperformed the sector average
- Low return on equity reflects management’s struggle to allocate funds effectively
Invesco’s stock price of $24.10 implies a valuation ratio of 9.1x forward P/E. If you’re considering IVZ for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
