The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
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 three S&P 500 stocks that don’t make the cut and some better choices instead.
General Mills (GIS)
Market Cap: $20.15 billion
Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.
Why Is GIS Risky?
- Falling unit sales over the past two years suggest it might have to lower prices to stimulate growth
- Forecasted revenue decline of 3.4% for the upcoming 12 months implies demand will fall even further
- Inability to adjust its cost structure while its revenue declined over the last year led to a 12.2 percentage point drop in the company’s operating margin
General Mills is trading at $37.79 per share, or 12.5x forward P/E. Check out our free in-depth research report to learn more about why GIS doesn’t pass our bar.
Solventum (SOLV)
Market Cap: $15.34 billion
Founded in 1985, Solventum (NYSE:SOLV) develops, manufactures, and commercializes a portfolio of healthcare products and services addressing critical customer and therapeutic patient needs.
Why Does SOLV Fall Short?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- 18.2 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $90.16 per share, Solventum trades at 13.6x forward P/E. To fully understand why you should be careful with SOLV, check out our full research report (it’s free).
JPMorgan Chase (JPM)
Market Cap: $939.7 billion
Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE:JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.
Why Do We Think Twice About JPM?
- The company has faced growth challenges as its 7.8% annual revenue increases over the last two years fell short of other banking companies
- Weak unit economics are reflected in its net interest margin of 2.5%, one of the worst among bank companies
- Anticipated 2.2 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue
JPMorgan Chase’s stock price of $353.81 implies a valuation ratio of 2.6x forward P/B. Dive into our free research report to see why there are better opportunities than JPM.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.