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While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.

Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. 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:

Lowe's (LOW)

Market Cap: $126 billion

Founded in North Carolina as Lowe's North Wilkesboro Hardware, the company is a home improvement retailer that sells everything from paint to tools to building materials.

Why Is LOW Not Exciting?

1. Recent store closures and weak same-store sales point to soft demand and an operational restructuring

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

3. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat

Lowe's is trading at $225.96 per share, or 18.1x forward P/E. If you’re considering LOW for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Wabtec (WAB)

Market Cap: $32.65 billion

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.

Why Are We Fans of WAB?

1. Average organic revenue growth of 9.5% over the past two years demonstrates its ability to expand independently without relying on acquisitions

2. Operating margin expanded by 6.3 percentage points over the last five years as it scaled and became more efficient

3. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 25.5% exceeded its revenue gains over the last two years

At $190.79 per share, Wabtec trades at 21.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Lennox (LII)

Market Cap: $19.98 billion

Based in Texas and founded over a century ago, Lennox (NYSE:LII) is a climate control solutions company offering heating, ventilation, air conditioning, and refrigeration (HVACR) goods.

Why Does LII Catch Our Eye?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

2. Earnings per share have massively outperformed its peers over the last two years, increasing by 24.3% annually

3. ROIC punches in at 50.4%, illustrating management’s expertise in identifying profitable investments

Lennox’s stock price of $562.92 implies a valuation ratio of 23.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.