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The S&P 500 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. That said, here is one S&P 500 stock that could deliver good returns and two that could be in trouble.

Two Stocks to Sell:

Darden (DRI)

Market Cap: $24.03 billion

Founded in 1968 as Red Lobster, Darden (NYSE:DRI) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Why Are We Wary of DRI?

1. Annual sales growth of 5.7% over the last six years lagged behind its restaurant peers as its large revenue base made it difficult to generate incremental demand

2. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants

3. Challenging supply chain dynamics and bad unit economics are reflected in its low gross margin of 21.3%

Darden is trading at $202.21 per share, or 20.1x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than DRI.

Charter (CHTR)

Market Cap: $52.4 billion

Operating as Spectrum, Charter (NASDAQ:CHTR) is a leading telecommunications company offering cable television, high-speed internet, and voice services across the United States.

Why Is CHTR Risky?

1. Demand for its offerings was relatively low as its number of internet subscribers has underwhelmed

2. Estimated sales for the next 12 months are flat and imply a softer demand environment

3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $368.73 per share, Charter trades at 10.4x forward price-to-earnings. If you’re considering CHTR for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Cardinal Health (CAH)

Market Cap: $32.96 billion

Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE:CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.

Why Do We Like CAH?

1. Massive revenue base of $222.3 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power

2. Projected revenue growth of 6.2% over the next 12 months is higher than most peers

3. Earnings per share grew by 7.1% annually over the last five years and topped the peer group average