The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are two S&P 500 stocks leading the market forward and one that could be in trouble.
One Stock to Sell:
Labcorp (LH)
Market Cap: $22.24 billion
With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp (NYSE: LH) provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.
Why Are We Cautious About LH?
- Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Sales were less profitable over the last five years as its earnings per share fell by 11.1% annually, worse than its revenue declines
At $271.22 per share, Labcorp trades at 14.3x forward P/E. Read our free research report to see why you should think twice about including LH in your portfolio.
Two Stocks to Watch:
Incyte (INCY)
Market Cap: $20.62 billion
Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ: INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.
Why Could INCY Be a Winner?
- Annual revenue growth of 16.6% over the last two years was superb and indicates its market share increased during this cycle
- Share buybacks catapulted its annual earnings per share growth to 19.4%, which outperformed its revenue gains over the last five years
- Free cash flow margin increased by 8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Incyte is trading at $104.02 per share, or 3.7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Fair Isaac Corporation (FICO)
Market Cap: $28.41 billion
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Will FICO Outperform?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 34% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
- Improving returns on capital reflect management’s ability to monetize investments
Fair Isaac Corporation’s stock price of $1,220 implies a valuation ratio of 24.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
