While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
Applied Materials (AMAT)
Market Cap: $255.8 billion
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Cautious About AMAT?
- Projected sales growth of 2.9% for the next 12 months suggests sluggish demand
At $321.82 per share, Applied Materials trades at 35.3x forward P/E. To fully understand why you should be careful with AMAT, check out our full research report (it’s free).
Two Stocks to Watch:
Intuitive Surgical (ISRG)
Market Cap: $178.7 billion
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Should ISRG Be on Your Watchlist?
- Average unit sales growth of 12.2% over the past two years reflects steady demand for its products
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share grew by 21.6% annually over the last five years, massively outpacing its peers
Intuitive Surgical is trading at $504.16 per share, or 50.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Insulet (PODD)
Market Cap: $18 billion
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Are We Bullish on PODD?
- Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 26.8% over the past two years
- Free cash flow margin increased by 32.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
Insulet’s stock price of $255.75 implies a valuation ratio of 44.2x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 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.
