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. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.
Two Industrials Stocks to Sell:
Builders FirstSource (BLDR)
Market Cap: $6.34 billion
Headquartered in Irving, TX, Builders FirstSource (NYSE:BLDR) is a construction materials manufacturer that offers a variety of lumber and lumber-related building products.
Why Do We Pass on BLDR?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
Builders FirstSource is trading at $59.09 per share, or 16.6x forward P/E. Read our free research report to see why you should think twice about including BLDR in your portfolio.
Otis (OTIS)
Market Cap: $25.84 billion
Credited with inventing the first hydraulic passenger elevator, Otis Worldwide (NYSE:OTIS) is an elevator and escalator manufacturing, installation and service company.
Why Are We Bearish on OTIS?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.3%
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.9% annually
Otis’s stock price of $68.24 implies a valuation ratio of 16.3x forward P/E. Check out our free in-depth research report to learn more about why OTIS doesn’t pass our bar.
One Industrials Stock to Buy:
Corning (GLW)
Market Cap: $140.5 billion
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Should You Buy GLW?
- Annual revenue growth of 14.3% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 30.3% annually over the last two years, massively outpacing its peers
- Free cash flow margin increased by 5.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $160.55 per share, Corning trades at 45.5x forward P/E. Is now a good time to buy? Find out 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.