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.
Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
Charles River Laboratories (CRL)
Market Cap: $14.41 billion
Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.
Why Do We Avoid CRL?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
At $301.92 per share, Charles River Laboratories trades at 24.2x forward P/E. If you’re considering CRL for your portfolio, see our FREE research report to learn more.
Verisk (VRSK)
Market Cap: $23.12 billion
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Are We Hesitant About VRSK?
- Muted 1.7% annual revenue growth over the last five years shows its demand lagged behind its business services peers
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 8% annually
Verisk is trading at $176.54 per share, or 21.5x forward P/E. Dive into our free research report to see why there are better opportunities than VRSK.
One Stock to Buy:
Hubbell (HUBB)
Market Cap: $25.05 billion
A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Why Do We Love HUBB?
- 9.8% annual revenue growth over the last five years surpassed the sector average as its offerings resonated with customers
- Share repurchases over the last five years enabled its annual earnings per share growth of 18.9% to outpace its revenue gains
- Free cash flow margin increased by 5.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Hubbell’s stock price of $473.94 implies a valuation ratio of 21.8x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.