2 S&P 500 Stocks with Exciting Potential and 1 We Ignore

Barchart·04/02/2026 03:26:16

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 are two S&P 500 stocks leading the market forward and one that may struggle.

One Stock to Sell:

Home Depot (HD)

Market Cap: $328.2 billion

Founded and headquartered in Atlanta, Georgia, Home Depot (NYSE:HD) is a home improvement retailer that sells everything from tools to building materials to appliances.

Why Are We Wary of HD?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 1.5% for the last three years
2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
3. Gross margin of 33.4% is below its competitors, leaving less money for marketing and promotions

Home Depot is trading at $329.90 per share, or 21.9x forward P/E. If you’re considering HD for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Cencora (COR)

Market Cap: $61.79 billion

Formerly known as AmerisourceBergen until its 2023 rebranding, Cencora (NYSE:COR) is a global pharmaceutical distribution company that connects manufacturers with healthcare providers while offering logistics, data analytics, and consulting services.

Why Is COR a Good Business?

1. Unparalleled scale of $325.8 billion in revenue enables it to spread administrative costs across a larger membership base
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 14.5% exceeded its revenue gains over the last five years
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Cencora’s stock price of $317.62 implies a valuation ratio of 17.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Marsh & McLennan (MRSH)

Market Cap: $83.21 billion

With roots dating back to 1871 and a presence in over 130 countries, Marsh & McLennan (NYSE:MRSH) is a global professional services firm that helps organizations manage risk, strategy, and workforce challenges through its four specialized businesses.

Why Are We Backing MRSH?

1. Annual revenue growth of 9.4% over the last five years was superb and indicates its market share increased during this cycle
2. Massive revenue base of $26.98 billion makes it a well-known name that influences purchasing decisions
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

At $170.50 per share, Marsh & McLennan trades at 16.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

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