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.

Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

Nike (NKE)

Market Cap: $96.83 billion

Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.

Why Should You Dump NKE?

1. Weak constant currency growth over the past two years indicates challenges in maintaining its market share
2. Projected 2.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $65.38 per share, Nike trades at 33.6x forward P/E. If you’re considering NKE for your portfolio, see our FREE research report to learn more.

Danaher (DHR)

Market Cap: $171 billion

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Does DHR Give Us Pause?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Free cash flow margin dropped by 4.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Danaher is trading at $242.60 per share, or 28.7x forward P/E. Dive into our free research report to see why there are better opportunities than DHR.

One Stock to Watch:

Ulta (ULTA)

Market Cap: $30.32 billion

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ: ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.

Why Do We Like ULTA?

1. Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
2. Same-store sales growth averaged 2.6% over the past two years, showing it’s bringing new and repeat shoppers into its stores
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Ulta’s stock price of $684.73 implies a valuation ratio of 24.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.