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 could be in trouble.
One Stock to Sell:
Ball (BALL)
Market Cap: $16.8 billion
Started with a $200 loan in 1880, Ball (NYSE:BALL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Why Do We Think Twice About BALL?
- 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 2.3% for the last five years
- Gross margin of 21.1% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Low free cash flow margin of 0.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Ball is trading at $63.44 per share, or 15x forward P/E. Dive into our free research report to see why there are better opportunities than BALL.
Two Stocks to Watch:
Coinbase (COIN)
Market Cap: $40.53 billion
Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Is COIN Interesting?
- Superior platform functionality and low servicing costs lead to a best-in-class gross margin of 85.7%
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 38.1%, and its rise over the last few years was fueled by some leverage on its fixed costs
- COIN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $154.02 per share, Coinbase trades at 19.4x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
W. R. Berkley (WRB)
Market Cap: $27.82 billion
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE:WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Is WRB on Our Radar?
- Steady 11.3% annualized growth in net premiums earned over the last five years shows its insurance offerings are gaining traction
- Exciting book value per share outlook for the upcoming 12 months calls for 24.4% growth, an acceleration from its two-year trend
- Industry-leading 20% return on equity demonstrates management’s skill in finding high-return investments
W. R. Berkley’s stock price of $71.60 implies a valuation ratio of 2.6x forward P/B. Is now the right time to buy? See for yourself in our comprehensive 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.