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 best left off your watchlist.
Two Stocks to Sell:
Dover (DOV)
Market Cap: $29.92 billion
A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE: DOV) manufactures engineered components and specialized equipment for numerous industries.
Why Is DOV Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Earnings per share lagged its peers over the last two years as they only grew by 4.6% annually
- Waning returns on capital imply its previous profit engines are losing steam
At $221.88 per share, Dover trades at 20.8x forward P/E. Read our free research report to see why you should think twice about including DOV in your portfolio.
M&T Bank (MTB)
Market Cap: $32.67 billion
Tracing its roots back to 1856 when it was founded as Manufacturers and Traders Bank in Buffalo, New York, M&T Bank (NYSE: MTB) is a regional bank holding company that provides retail and commercial banking, trust, wealth management, and investment services to consumers and businesses.
Why Do We Think Twice About MTB?
- Muted 1.4% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Earnings per share lagged its peers over the last two years as they only grew by 4.2% annually
- Estimated tangible book value per share growth of 4.5% for the next 12 months implies profitability will slow from its two-year trend
M&T Bank is trading at $215 per share, or 1.2x forward P/B. Check out our free in-depth research report to learn more about why MTB doesn’t pass our bar.
One Stock to Buy:
Palantir Technologies (PLTR)
Market Cap: $366.4 billion
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Are We Backing PLTR?
- Billings growth has averaged 59.5% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- PLTR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Palantir Technologies’s stock price of $153.51 implies a valuation ratio of 52.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.
