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. That said, here is one S&P 500 stock that is leading the market forward and two best left off your watchlist.
Two Stocks to Sell:
Marriott (MAR)
Market Cap: $96.11 billion
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Why Are We Bearish on MAR?
- Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers
- Free cash flow margin is expected to remain in place over the coming year
- Returns on capital are increasing as management makes relatively better investment decisions
Marriott’s stock price of $362.75 implies a valuation ratio of 31.1x forward P/E. Check out our free in-depth research report to learn more about why MAR doesn’t pass our bar.
International Paper (IP)
Market Cap: $20.07 billion
Established in 1898, International Paper (NYSE: IP) produces containerboard, pulp, paper, and materials used in packaging and printing applications.
Why Should You Sell IP?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.9% over the last five years was below our standards for the industrials sector
- Earnings per share fell by 15.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $37.90 per share, International Paper trades at 21.5x forward P/E. Read our free research report to see why you should think twice about including IP in your portfolio.
One Stock to Watch:
Waste Management (WM)
Market Cap: $95.28 billion
Headquartered in Houston, Waste Management (NYSE: WM) is a provider of comprehensive waste management services in North America.
Why Could WM Be a Winner?
- Annual revenue growth of 10.8% over the last two years was superb and indicates its market share increased during this cycle
- Offerings are mission-critical for businesses and result in a stellar gross margin of 39%
- Highly efficient business model is illustrated by its impressive 17.4% operating margin
Waste Management is trading at $236.03 per share, or 28.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
