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:
Mondelez (MDLZ)
Market Cap: $79.91 billion
Founded as Nabisco in 1903, Mondelez (NASDAQ: MDLZ) is a packaged snacks powerhouse best known for its Oreo, Cadbury, Toblerone, Ritz, and Trident brands.
Why Does MDLZ Worry Us?
- Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Estimated sales growth of 2.5% for the next 12 months implies demand will slow from its three-year trend
- Performance over the past three years shows its incremental sales were much less profitable, as its earnings per share fell by 2% annually
At $62.20 per share, Mondelez trades at 19.1x forward P/E. Dive into our free research report to see why there are better opportunities than MDLZ.
Two Stocks to Watch:
Veeva Systems (VEEV)
Market Cap: $25.87 billion
Originally named "Verticals onDemand" before rebranding in 2009, Veeva Systems (NYSE: VEEV) provides cloud software, data solutions, and consulting services that help life sciences companies develop and bring products to market more efficiently.
Why Are We Positive on VEEV?
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 28.7%, and its profits increased over the last year as it scaled
- Robust free cash flow margin of 43.4% gives it many options for capital deployment
Veeva Systems is trading at $160.50 per share, or 7.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
EMCOR (EME)
Market Cap: $38.01 billion
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Are We Backing EME?
- Market share has increased this cycle as its 16.3% annual revenue growth over the last two years was exceptional
- Share buybacks catapulted its annual earnings per share growth to 40.2%, which outperformed its revenue gains over the last two years
- Rising returns on capital show management is finding more attractive investment opportunities
EMCOR’s stock price of $855.46 implies a valuation ratio of 29.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
