1 S&P 500 Stock with Exciting Potential and 2 We Brush Off

Barchart·03/16/2026 04:08:29

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.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two best left off your watchlist.

Two Stocks to Sell:

Sherwin-Williams (SHW)

Market Cap: $78.78 billion

Widely known for its success in the paint industry, Sherwin-Williams (NYSE:SHW) is a manufacturer of paints, coatings, and related products.

Why Are We Hesitant About SHW?

1. Annual sales growth of 1.1% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4.2%
3. Earnings per share lagged its peers over the last two years as they only grew by 5.2% annually

Sherwin-Williams is trading at $319.89 per share, or 26.7x forward P/E. Check out our free in-depth research report to learn more about why SHW doesn’t pass our bar.

Mettler-Toledo (MTD)

Market Cap: $23.86 billion

With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE:MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.

Why Is MTD Not Exciting?

1. Annual revenue growth of 3.1% over the last two years was below our standards for the healthcare sector
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. Eroding returns on capital suggest its historical profit centers are aging

Mettler-Toledo’s stock price of $1,172 implies a valuation ratio of 25.1x forward P/E. Dive into our free research report to see why there are better opportunities than MTD.

One Stock to Watch:

AMETEK (AME)

Market Cap: $49.13 billion

Started from its humble beginnings in motor repair, AMETEK (NYSE:AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.

Why Is AME on Our Radar?

1. Solid 10.3% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Healthy operating margin of 25.1% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
3. Strong free cash flow margin of 21.5% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

At $215.39 per share, AMETEK trades at 26.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

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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.

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