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 positioned to outperform and two best left off your watchlist.
Two Stocks to Sell:
Darden (DRI)
Market Cap: $23.13 billion
Founded in 1968 as Red Lobster, Darden (NYSE: DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.
Why Do We Think Twice About DRI?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.4% for the last six years
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Gross margin of 21.6% is below its competitors, leaving less money for marketing and promotions
At $198.20 per share, Darden trades at 18x forward P/E. Dive into our free research report to see why there are better opportunities than DRI.
Ford (F)
Market Cap: $55.03 billion
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE: F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Why Do We Avoid F?
- Flat vehicles sold over the past two years suggest it might have to lower prices to accelerate growth
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 22.5% annually
- High net-debt-to-EBITDA ratio of 9× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Ford is trading at $13.75 per share, or 10.7x forward P/E. To fully understand why you should be careful with F, check out our full research report (it’s free).
One Stock to Watch:
Cincinnati Financial (CINF)
Market Cap: $25.35 billion
Founded in 1950 by independent insurance agents seeking stable market options for their clients, Cincinnati Financial (NASDAQ: CINF) provides property casualty insurance, life insurance, and related financial services through independent agencies across 46 states.
Why Does CINF Catch Our Eye?
- Market penetration was impressive this cycle as its net premiums earned expanded by 12.1% annually over the last two years
- Share repurchases over the last five years enabled its annual earnings per share growth of 21.6% to outpace its revenue gains
- Impressive 20.8% annual book value per share growth over the last two years indicates it’s building equity value this cycle
Cincinnati Financial’s stock price of $162.52 implies a valuation ratio of 1.6x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
