The S&P 500 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 leading the market forward and one best left off your watchlist.

One Stock to Sell:

Keurig Dr Pepper (KDP)

Market Cap: $47.68 billion

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Why Are We Cautious About KDP?

1. Sizable revenue base leads to growth challenges as its 6.6% annual revenue increases over the last three years fell short of other consumer staples companies

2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 4.7 percentage points

3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

At $35.25 per share, Keurig Dr Pepper trades at 17.3x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than KDP .

Two Stocks to Watch:

Electronic Arts (EA)

Market Cap: $37.76 billion

Best known for its Madden NFL and FIFA sports franchises, Electronic Arts (NASDAQ:EA) is one of the world’s largest video game publishers.

Why Does EA Stand Out?

1. Iconic platform is known by nearly everyone in its market, allowing it to acquire new users at little to no cost

2. Healthy EBITDA margin of 36.2% shows it’s a well-run company with efficient processes

3. Robust free cash flow margin of 27% gives it many options for capital deployment

Electronic Arts’s stock price of $142.97 implies a valuation ratio of 14.1x forward EV-to-EBITDA. Is now a good time to buy? See for yourself in our full research report, it’s free .

Ross Stores (ROST)

Market Cap: $43.53 billion

Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.

Why Are We Positive On ROST?

1. Rapid rollout of new stores to capitalize on market opportunities makes sense given its strong same-store sales performance

2. Comparable store sales rose by 3.6% on average over the past two years, demonstrating its ability to drive increased spending at existing locations

3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends