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 two S&P 500 stocks leading the market forward and one best left off your watchlist.
One Stock to Sell:
MGM Resorts (MGM)
Market Cap: $9.69 billion
Operating several properties on the Las Vegas Strip, MGM Resorts (NYSE:MGM) is a global hospitality and entertainment company known for its resorts and casinos.
Why Should You Sell MGM?
- Annual sales growth of 6% over the last two years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- 13× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $35.06 per share, MGM Resorts trades at 15.2x forward P/E. Check out our free in-depth research report to learn more about why MGM doesn’t pass our bar.
Two Stocks to Watch:
TJX (TJX)
Market Cap: $168.2 billion
Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX (NYSE:TJX) is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.
Why Are We Positive On TJX?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 4% growth over the past two years
- Enormous revenue base of $58.98 billion compensates for its low gross margin and provides significant leverage in supplier negotiations
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its returns are growing as it capitalizes on even better market opportunities
TJX is trading at $151.57 per share, or 30.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Waste Management (WM)
Market Cap: $86.99 billion
Headquartered in Houston, Waste Management (NYSE:WM) is a provider of comprehensive waste management services in North America.
Why Does WM Stand Out?
- Annual revenue growth of 10.9% over the past two years was outstanding, reflecting market share gains this cycle
- Offerings are mission-critical for businesses and result in a top-tier gross margin of 38.7%
- Healthy operating margin of 17.2% shows it’s a well-run company with efficient processes
Waste Management’s stock price of $216.13 implies a valuation ratio of 27x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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