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 could deliver good returns and two that may struggle.
Two Stocks to Sell:
Clorox (CLX)
Market Cap: $15.31 billion
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Why Does CLX Fall Short?
- Sales were flat over the last three years, indicating it’s failed to expand its business
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Estimated sales decline of 8.3% for the next 12 months implies an even more challenging demand environment
Clorox’s stock price of $125 implies a valuation ratio of 19.7x forward P/E. To fully understand why you should be careful with CLX, check out our full research report (it’s free).
Citizens Financial Group (CFG)
Market Cap: $20.59 billion
Tracing its roots back to 1828 as a community-focused institution, Citizens Financial Group (NYSE:CFG) is a regional bank that provides retail and commercial banking services to individuals, small businesses, and large corporations across 14 states.
Why Does CFG Worry Us?
- Net interest income trends were unexciting over the last five years as its 4% annual growth was below the typical bank company
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 36.7 basis points (100 basis points = 1 percentage point)
- Sales were less profitable over the last two years as its earnings per share fell by 16.4% annually, worse than its revenue declines
At $47.60 per share, Citizens Financial Group trades at 0.9x forward P/B. If you’re considering CFG for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Cintas (CTAS)
Market Cap: $90.71 billion
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ:CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Do We Love CTAS?
- Annual revenue growth of 8.3% over the last two years beat the sector average and underscores the unique value of its offerings
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.7% exceeded its revenue gains over the last five years
- Robust free cash flow margin of 16.5% gives it many options for capital deployment
Cintas is trading at $225.99 per share, or 46.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.