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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here are two S&P 500 stocks leading the market forward and one best left off your watchlist.
One Stock to Sell:
Centene (CNC)
Market Cap: $18.49 billion
Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE: CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations.
Why Do We Think Twice About CNC?
- Weak customer trends over the past two years suggest it may need to improve its products, pricing, or go-to-market strategy
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 16.3% annually while its revenue grew
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Centene’s stock price of $37.73 implies a valuation ratio of 12.4x forward P/E. If you’re considering CNC for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Palo Alto Networks (PANW)
Market Cap: $133.1 billion
Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ: PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.
Why Do We Like PANW?
- Exciting sales outlook for the upcoming 12 months calls for 28.1% growth, an acceleration from its two-year trend
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 36% enables it to reinvest or return capital consistently
At $165.40 per share, Palo Alto Networks trades at 9.1x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Booking (BKNG)
Market Cap: $147 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Does BKNG Stand Out?
- Platform is difficult to replicate at scale and leads to a best-in-class gross margin of 86.7%
- Share repurchases over the last three years enabled its annual earnings per share growth of 31.4% to outpace its revenue gains
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Booking is trading at $185.95 per share, or 13.2x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
