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.
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:
Fastenal (FAST)
Market Cap: $55.08 billion
Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.
Why Are We Cautious About FAST?
- Muted 3.6% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.8% annually
- Free cash flow margin shrank by 4.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $48.25 per share, Fastenal trades at 44.6x forward P/E. If you’re considering FAST for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Live Nation (LYV)
Market Cap: $37.91 billion
Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE:LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.
Why Does LYV Catch Our Eye?
- Annual revenue growth of 24% over the last five years was superb and indicates its market share is rising
- Additional sales over the last five years increased its profitability as the 26% annual growth in its earnings per share outpaced its revenue
- Returns on capital are growing as management capitalizes on its market opportunities
Live Nation is trading at $163.42 per share, or 49.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Cigna (CI)
Market Cap: $81.5 billion
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE:CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Are We Positive On CI?
- Annual revenue growth of 18.7% over the past two years was outstanding, reflecting market share gains this cycle
- Enormous revenue base of $262 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Earnings per share grew by 7.7% annually over the last five years and topped the peer group average
Cigna’s stock price of $307.50 implies a valuation ratio of 9.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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