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

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 that could deliver good returns and one that could be in trouble.

One Stock to Sell:

Allegion (ALLE)

Market Cap: $13.49 billion

Allegion plc (NYSE:ALLE) is a provider of security products and solutions that keep people and assets safe and secure in various environments.

Why Do We Think Twice About ALLE?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Anticipated sales growth of 6.2% for the next year implies demand will be shaky
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $156.63 per share, Allegion trades at 18x forward P/E. Read our free research report to see why you should think twice about including ALLE in your portfolio.

Two Stocks to Watch:

McKesson (MCK)

Market Cap: $119.9 billion

With roots dating back to 1833, making it one of America's oldest continuously operating businesses, McKesson (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals, medical supplies, and provides technology solutions to pharmacies, hospitals, and healthcare providers.

Why Should You Buy MCK?

1. Annual revenue growth of 14.9% over the last two years beat the sector average and underscores the unique value of its offerings
2. Dominant market position is represented by its $398 billion in revenue, which creates significant barriers to entry in this highly regulated industry
3. Share buybacks catapulted its annual earnings per share growth to 18%, which outperformed its revenue gains over the last five years

McKesson is trading at $979.91 per share, or 23x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Nasdaq (NDAQ)

Market Cap: $50.67 billion

Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ:NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.

Why Should NDAQ Be on Your Watchlist?

1. Impressive 16.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings per share have grown at a respectable 11.1% annual rate over the last five years, a bit better than the industry average
3. Industry-leading 15.7% return on equity demonstrates management’s skill in finding high-return investments

Nasdaq’s stock price of $89.10 implies a valuation ratio of 22.4x forward P/E. Is now the right time to buy? Find out 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.