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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here are two S&P 500 stocks positioned to outperform and one that could be in trouble.
One Stock to Sell:
Capital One (COF)
Market Cap: $143 billion
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Are We Hesitant About COF?
- Large asset base makes it harder to grow tangible book value per share quickly, and its annual tangible book value per share growth of 1.3% over the last two years was below our standards for the financials sector
At $223 per share, Capital One trades at 12.8x forward P/E. Dive into our free research report to see why there are better opportunities than COF.
Two Stocks to Watch:
Booking (BKNG)
Market Cap: $176.8 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Could BKNG Be a Winner?
- Has the opportunity to boost monetization through new features and premium offerings as its room nights booked have grown by 9.5% annually over the last two years
- Share buybacks catapulted its annual earnings per share growth to 39%, which outperformed its revenue gains over the last three years
- Robust free cash flow margin of 35.3% gives it many options for capital deployment
Booking is trading at $5,455 per share, or 18.2x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Everest Group (EG)
Market Cap: $14.49 billion
Rebranded from Everest Re in 2023 to reflect its evolution beyond just reinsurance, Everest Group (NYSE: EG) underwrites property and casualty reinsurance and insurance worldwide, serving insurance companies, corporations, and other clients across six continents.
Why Are We Positive On EG?
- Market share has increased this cycle as its 15.4% annual revenue growth over the last two years was exceptional
- Strong 14% annualized net premiums earned expansion over the last five years shows it’s capturing market share this cycle
- Projected book value per share growth of 16.2% for the next 12 months suggests its capital momentum from the last two years will persist
Everest Group’s stock price of $345.49 implies a valuation ratio of 0.9x forward P/B. Is now a good time to buy? 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 Kadant (+351% 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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