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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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are two S&P 500 stocks that could deliver good returns and one that could be in trouble.
One Healthcare Stock to Sell:
Viatris (VTRS)
Market Cap: $10.33 billion
Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ:VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.
Why Are We Out on VTRS?
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Annual sales declines of 4.8% for the past two years show its products and services struggled to connect with the market during this cycle
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Projected sales decline of 6.5% over the next 12 months indicates demand will continue deteriorating
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Revenue growth over the past five years was nullified by the company’s new share issuances as its earnings per share fell by 9.6% annually
Viatris’s stock price of $8.52 implies a valuation ratio of 3.4x forward P/E. If you’re considering VTRS for your portfolio, see our FREE research report to learn more.
Two Healthcare Stocks to Watch:
Stryker (SYK)
Market Cap: $144.4 billion
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE:SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Does SYK Catch Our Eye?
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Average organic revenue growth of 10.4% over the past two years demonstrates its ability to expand independently without relying on acquisitions
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$23.22 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
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Free cash flow margin of 14.6% is higher than many in the industry, giving it breathing room and optionality
Stryker is trading at $378.22 per share, or 27.4x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Boston Scientific (BSX)
Market Cap: $155.2 billion
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE:BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.