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 are three S&P 500 stocks to avoid and some better alternatives instead.
Republic Services (RSG)
Market Cap: $62.27 billion
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Why Are We Cautious About RSG?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.7% over the last two years was below our standards for the industrials sector
- Flat unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Anticipated sales growth of 5.1% for the next year implies demand will be shaky
Republic Services’s stock price of $202.14 implies a valuation ratio of 26.9x forward P/E. If you’re considering RSG for your portfolio, see our FREE research report to learn more.
Expeditors (EXPD)
Market Cap: $19.86 billion
Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.
Why Is EXPD Not Exciting?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Gross margin of 13.5% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Waning returns on capital imply its previous profit engines are losing steam
Expeditors is trading at $150.55 per share, or 22.6x forward P/E. Read our free research report to see why you should think twice about including EXPD in your portfolio.
KeyCorp (KEY)
Market Cap: $23.52 billion
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Why Does KEY Give Us Pause?
- Muted 3.4% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Net interest margin of 2.6% is well below other banks, signaling its loans aren’t very profitable
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.5% annually
At $21.82 per share, KeyCorp trades at 1.3x forward P/B. Check out our free in-depth research report to learn more about why KEY doesn’t pass our bar.
Stocks We Like More
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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
