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:
KeyCorp (KEY)
Market Cap: $21.61 billion
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Are We Cautious About KEY?
- Muted 3.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 5.9% annually
- Tangible book value per share stagnated over the last five years, limiting its ability to leverage its balance sheet to make additional investments
At $20.28 per share, KeyCorp trades at 1.2x forward P/B. To fully understand why you should be careful with KEY, check out our full research report (it’s free).
Two Stocks to Buy:
Philip Morris (PM)
Market Cap: $298.5 billion
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Why Do We Love PM?
- Unique products and pricing power result in a best-in-class gross margin of 67%
- Excellent operating margin of 37% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
- Robust free cash flow margin of 26.6% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
Philip Morris is trading at $192 per share, or 21.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Quanta (PWR)
Market Cap: $96.75 billion
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Will PWR Outperform?
- Average backlog growth of 25.2% over the past two years shows it has a steady sales pipeline that will drive future orders
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 32.9% over the last two years outstripped its revenue performance
- Free cash flow margin grew by 7 percentage points over the last five years, giving the company more chips to play with
Quanta’s stock price of $645.14 implies a valuation ratio of 34.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
