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 is leading the market forward and two that may struggle.
Two Stocks to Sell:
CSX (CSX)
Market Cap: $97.82 billion
Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.
Why Do We Think CSX Will Underperform?
- Disappointing unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Flat earnings per share over the last two years lagged its peers
- 6.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $53.21 per share, CSX trades at 23.3x forward P/E. Dive into our free research report to see why there are better opportunities than CSX.
Everest Group (EG)
Market Cap: $14.86 billion
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Why Does EG Give Us Pause?
- Large revenue base constrains its growth potential, as seen in its unexciting 4.5% annualized increases in net premiums earned over the last two years fell below our expectations for the insurance sector
- Sales are projected to tank by 10.4% over the next 12 months as demand evaporates
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 12.5% annually
Everest Group’s stock price of $375.53 implies a valuation ratio of 0.9x forward P/B. To fully understand why you should be careful with EG, check out our full research report (it’s free).
One Stock to Watch:
Apple (AAPL)
Market Cap: $4.72 trillion
Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.
Why Does AAPL Catch Our Eye?
- Apple’s revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
- Still, Apple’s devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
- The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.
Apple is trading at $321.10 per share, or 35.7x forward price-to-earnings. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
