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 is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Stocks to Sell:
Universal Health Services (UHS)
Market Cap: $11.85 billion
With a network spanning 39 states and three countries, Universal Health Services (NYSE:UHS) operates acute care hospitals and behavioral health facilities across the United States, United Kingdom, and Puerto Rico.
Why Are We Cautious About UHS?
- Poor comparable store sales performance over the past two years indicates it’s having trouble bringing new patients into its facilities
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 1.3 percentage points
- Low free cash flow margin of 4.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Universal Health Services’s stock price of $186.26 implies a valuation ratio of 9.2x forward P/E. If you’re considering UHS for your portfolio, see our FREE research report to learn more.
Aflac (AFL)
Market Cap: $57.56 billion
Known for its iconic duck mascot that has quacked "Aflac!" in commercials since 2000, Aflac (NYSE:AFL) provides supplemental health and life insurance policies that pay cash benefits directly to policyholders for expenses not covered by their primary insurance.
Why Is AFL Risky?
- Insurance policy sales contracted this cycle as net premiums earned decreased by 7.8% annually over the last four years
- Pre-tax profit margin declined by 9.7 percentage points over the last two years as its sales cratered
- Earnings per share lagged its peers over the last two years as they only grew by 13% annually
At $107.63 per share, Aflac trades at 2.2x forward P/B. Read our free research report to see why you should think twice about including AFL in your portfolio.
One Stock to Buy:
Quanta (PWR)
Market Cap: $56.36 billion
A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Will PWR Outperform?
- Sales pipeline is in good shape as its backlog averaged 20.3% growth over the past two years
- Projected revenue growth of 12.8% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share have massively outperformed its peers over the last two years, increasing by 25.1% annually
Quanta is trading at $379 per share, or 33.8x 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
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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