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.
Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here are two S&P 500 stocks leading the market forward and one best left off your watchlist.
One Stock to Sell:
Moderna (MRNA)
Market Cap: $19.51 billion
Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ: MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.
Why Do We Avoid MRNA?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 46.7% annually over the last two years
- Earnings per share fell by 30.2% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Free cash flow margin dropped by 178.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Moderna is trading at $49.30 per share, or 9.7x forward price-to-sales. Check out our free in-depth research report to learn more about why MRNA doesn’t pass our bar.
Two Stocks to Buy:
AMD (AMD)
Market Cap: $354.6 billion
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Are We Bullish on AMD?
- Annual revenue growth of 28.8% over the past five years was outstanding, reflecting market share gains this cycle
- Exciting sales outlook for the upcoming 12 months calls for 34.8% growth, an acceleration from its two-year trend
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 26.4% annually
AMD’s stock price of $217.20 implies a valuation ratio of 31.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Texas Pacific Land (TPL)
Market Cap: $30.63 billion
One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE: TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.
Why Is TPL a Top Pick?
- Annual revenue growth of 26.2% over the past ten years was outstanding, reflecting market share gains this cycle
- Highly-profitable operating model results in strong unit economics and a best-in-class gross margin of 95%
- TPL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $444.10 per share, Texas Pacific Land trades at 32.8x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our in-depth 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 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
