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 could deliver good returns and two best left off your watchlist.
Two Healthcare Stocks to Sell:
Align Technology (ALGN)
Market Cap: $11.97 billion
Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.
Why Does ALGN Worry Us?
- Weak clear aligner shipments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.4 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $166.81 per share, Align Technology trades at 15.4x forward P/E. Check out our free in-depth research report to learn more about why ALGN doesn’t pass our bar.
IQVIA (IQV)
Market Cap: $41.6 billion
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Does IQV Give Us Pause?
- Annual sales growth of 3.5% over the last two years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Free cash flow margin shrank by 3.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
IQVIA’s stock price of $241.27 implies a valuation ratio of 19.1x forward P/E. To fully understand why you should be careful with IQV, check out our full research report (it’s free for active Edge members).
One Healthcare Stock to Watch:
Abbott Laboratories (ABT)
Market Cap: $220.9 billion
With roots dating back to 1888 when founder Dr. Wallace Abbott began producing precise, dosage-form medications, Abbott Laboratories (NYSE: ABT) develops and sells a diverse range of healthcare products including medical devices, diagnostics, nutrition products, and branded generic pharmaceuticals.
Why Could ABT Be a Winner?
- Large revenue base of $43.84 billion gives it negotiating leverage and staying power in an industry with high barriers to entry
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 9.6% exceeded its revenue gains over the last five years
- Strong free cash flow margin of 16.8% enables it to reinvest or return capital consistently
Abbott Laboratories is trading at $127.01 per share, or 23.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
