
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 positioned to outperform and one that may struggle.
One Stock to Sell:
Live Nation (LYV)
Market Cap: $39.68 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 Is LYV Risky?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 5.1% over the last two years was below our standards for the consumer discretionary sector
- Poor expense management has led to an operating margin of 3.6% that is below the industry average
- Projected 1.7 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
At $170.71 per share, Live Nation trades at 125.4x forward P/E. If you’re considering LYV for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Keysight (KEYS)
Market Cap: $65.16 billion
Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.
Why Are We Bullish on KEYS?
- Market share has increased this cycle as its 14.7% annual revenue growth over the last two years was exceptional
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Strong free cash flow margin of 21.4% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Keysight is trading at $382.04 per share, or 27.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Everpure (P)
Market Cap: $51.48 billion
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Everpure (NYSE: P) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Why Is P a Good Business?
- Offerings are pivotal for their customers’ operations as its ARR has averaged 18.7% growth over the past two years
- Projected revenue growth of 38% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 54.2% annually
Everpure’s stock price of $154.74 implies a valuation ratio of 46.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
