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 two S&P 500 stocks leading the market forward and one that may struggle.
One Stock to Sell:
Genuine Parts (GPC)
Market Cap: $18.59 billion
Largely targeting the professional customer, Genuine Parts (NYSE: GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Why Are We Wary of GPC?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.1% over the last three years was below our standards for the consumer retail sector
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Subpar operating margin of 4.3% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Genuine Parts’s stock price of $134.86 implies a valuation ratio of 16.9x forward P/E. Read our free research report to see why you should think twice about including GPC in your portfolio.
Two Stocks to Watch:
Hershey (HSY)
Market Cap: $35.36 billion
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Why Do We Like HSY?
- Healthy operating margin of 18.2% shows it’s a well-run company with efficient processes
- Robust free cash flow margin of 16.5% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $176.94 per share, Hershey trades at 19x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Mastercard (MA)
Market Cap: $509 billion
Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE: MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.
Why Do We Love MA?
- Impressive 16.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.1% exceeded its revenue gains over the last five years
- ROE punches in at 182%, illustrating management’s expertise in identifying profitable investments
Mastercard is trading at $584.60 per share, or 27.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
