2 S&P 500 Stocks to Research Further and 1 We Question

While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.

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 positioned to outperform and one that could be in trouble.

One Stock to Sell:

General Motors (GM)

Market Cap: $73.29 billion

Founded in 1908 by William C. Durant, General Motors (NYSE:GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.

Why Are We Cautious About GM?

1. Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. High input costs result in an inferior gross margin of 12.2% that must be offset through higher volumes
3. Efficiency has decreased over the last five years as its operating margin fell by 5.8 percentage points

General Motors is trading at $81.09 per share, or 6.4x forward P/E. If you’re considering GM for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Waste Management (WM)

Market Cap: $94.59 billion

Headquartered in Houston, Waste Management (NYSE:WM) is a provider of comprehensive waste management services in North America.

Why Do We Like WM?

1. Impressive 11.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Offerings are difficult to replicate at scale and lead to a top-tier gross margin of 38.9%
3. Highly efficient business model is illustrated by its impressive 17.4% operating margin

Waste Management’s stock price of $234.30 implies a valuation ratio of 28.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Zoetis (ZTS)

Market Cap: $53.46 billion

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Why Are We Fans of ZTS?

1. Constant currency growth averaged 9.1% over the past two years, showing it can expand globally regardless of the macroeconomic environment
2. Robust free cash flow margin of 21.5% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
3. ROIC punches in at 29%, illustrating management’s expertise in identifying profitable investments

At $127 per share, Zoetis trades at 18x 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.