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.

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 three S&P 500 stocks that don’t make the cut and some better choices instead.

Salesforce (CRM)

Market Cap: $207.6 billion

With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.

Why Are We Wary of CRM?

1. ARR growth averaged a weak 9.1% over the last year, suggesting that competition is pulling some attention away from its software
2. Estimated sales growth of 11.8% for the next 12 months is soft and implies weaker demand
3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

At $223.03 per share, Salesforce trades at 4.6x forward price-to-sales. Check out our free in-depth research report to learn more about why CRM doesn’t pass our bar.

Kimberly-Clark (KMB)

Market Cap: $33.2 billion

Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE: KMB) is now a household products powerhouse known for personal care and tissue products.

Why Is KMB Not Exciting?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.9%
3. Capital intensity has ramped up over the last year as its free cash flow margin decreased by 6.3 percentage points

Kimberly-Clark is trading at $100.07 per share, or 13.1x forward P/E. To fully understand why you should be careful with KMB, check out our full research report (it’s free).

Carrier Global (CARR)

Market Cap: $48.63 billion

Founded by the inventor of air conditioning, Carrier Global (NYSE: CARR) manufactures heating, ventilation, air conditioning, and refrigeration products.

Why Should You Dump CARR?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
3. Waning returns on capital imply its previous profit engines are losing steam

Carrier Global’s stock price of $57.86 implies a valuation ratio of 20.4x forward P/E. Dive into our free research report to see why there are better opportunities than CARR.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.