1 S&P 500 Stock to Consider Right Now and 2 We Turn Down

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 is one S&P 500 stock that could deliver good returns and two best left off your watchlist.

Two Healthcare Stocks to Sell:

Align Technology (ALGN)

Market Cap: $11.97 billion

Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ:ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.

Why Does ALGN Worry Us?

1. Weak clear aligner shipments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.4 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $166.81 per share, Align Technology trades at 15.4x forward P/E. Check out our free in-depth research report to learn more about why ALGN doesn’t pass our bar.

IQVIA (IQV)

Market Cap: $41.6 billion

Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.

Why Does IQV Give Us Pause?

1. Annual sales growth of 3.5% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
2. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
3. Free cash flow margin shrank by 3.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

IQVIA’s stock price of $241.27 implies a valuation ratio of 19.1x forward P/E. To fully understand why you should be careful with IQV, check out our full research report (it’s free for active Edge members).

One Healthcare Stock to Watch:

Abbott Laboratories (ABT)

Market Cap: $220.9 billion

With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE:ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.

Why Could ABT Be a Winner?

1. Large revenue base of $43.84 billion gives it negotiating leverage and staying power in an industry with high barriers to entry
2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 9.6% exceeded its revenue gains over the last five years
3. Strong free cash flow margin of 16.8% enables it to reinvest or return capital consistently

Abbott Laboratories is trading at $127.01 per share, or 23.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in 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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.