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 best left off your watchlist.
One Stock to Sell:
Martin Marietta Materials (MLM)
Market Cap: $33.68 billion
Operating one of North America's largest networks of quarries, including 14 underground mines, Martin Marietta Materials (NYSE: MLM) is a natural resource-based building materials company that supplies aggregates, cement, and other construction materials for infrastructure and building projects.
Why Are We Wary of MLM?
- Sales tumbled by 2.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share were flat over the last two years and fell short of the peer group average
- Low returns on capital reflect management’s struggle to allocate funds effectively
Martin Marietta Materials is trading at $560.94 per share, or 27.2x forward P/E. Check out our free in-depth research report to learn more about why MLM doesn’t pass our bar.
Two Stocks to Watch:
Cardinal Health (CAH)
Market Cap: $46.93 billion
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Why Could CAH Be a Winner?
- Enormous revenue base of $250.7 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Projected revenue growth of 9% for the next 12 months indicates demand will rise above its two-year trend
- Performance over the past five years was boosted by share buybacks, which enabled its earnings per share to grow faster than its revenue
Cardinal Health’s stock price of $200.25 implies a valuation ratio of 17.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Blackstone (BX)
Market Cap: $92.78 billion
With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE: BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors.
Why Are We Backing BX?
- Annual revenue growth of 19% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 21.4% annual growth in its earnings per share outpaced its revenue
At $118.08 per share, Blackstone trades at 19.1x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
