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 are two S&P 500 stocks that could deliver good returns and one that may struggle.
One Stock to Sell:
FactSet (FDS)
Market Cap: $7.99 billion
Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE:FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.
Why Does FDS Fall Short?
- 5.6% annual revenue growth over the last two years was slower than its financials peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 7.1% annually
FactSet is trading at $215.04 per share, or 12.1x forward P/E. Check out our free in-depth research report to learn more about why FDS doesn’t pass our bar.
Two Stocks to Watch:
Analog Devices (ADI)
Market Cap: $197.6 billion
Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ:ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.
Why Do We Like ADI?
- Annual revenue growth of 14.9% over the last five years was superb and indicates its market share increased during this cycle
- Offerings are mission-critical for businesses and lead to a premier gross margin of 60.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
At $403.04 per share, Analog Devices trades at 33.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Broadridge (BR)
Market Cap: $17.6 billion
Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions (NYSE:BR) provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.
Why Could BR Be a Winner?
- Annual revenue growth of 8.7% over the last five years beat the sector average and underscores the unique value of its offerings
- Free cash flow margin increased by 10.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
Broadridge’s stock price of $153.32 implies a valuation ratio of 15.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
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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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.