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. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Stocks to Sell:
Charles River Laboratories (CRL)
Market Cap: $8.92 billion
Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE: CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.
Why Are We Wary of CRL?
- 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
- Sales are projected to be flat over the next 12 months and imply weak demand
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Charles River Laboratories’s stock price of $179.09 implies a valuation ratio of 17.7x forward P/E. Dive into our free research report to see why there are better opportunities than CRL.
Fifth Third Bancorp (FITB)
Market Cap: $36.04 billion
Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ: FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.
Why Are We Out on FITB?
- Net interest income trends were unexciting over the last five years as its 4.6% annual growth was below the typical banking firm
- Earnings per share were flat over the last two years while its revenue grew, showing its incremental sales were less profitable
- Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years
At $54.58 per share, Fifth Third Bancorp trades at 1.5x forward P/B. If you’re considering FITB for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Accenture (ACN)
Market Cap: $148.2 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 Could ACN Be a Winner?
- Market share has increased this cycle as its 9.6% annual revenue growth over the last five years was exceptional
- Massive revenue base of $70.73 billion makes it a well-known name that influences purchasing decisions
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Accenture is trading at $242.44 per share, or 17x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
