1 S&P 500 Stock to Own for Decades and 2 We Question

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.

Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

Stanley Black & Decker (SWK)

Market Cap: $11.04 billion

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Why Should You Dump SWK?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Stanley Black & Decker’s stock price of $71.13 implies a valuation ratio of 13.1x forward P/E. Check out our free in-depth research report to learn more about why SWK doesn’t pass our bar.

JPMorgan Chase (JPM)

Market Cap: $771.8 billion

Tracing its roots back to 1799 when its earliest predecessor was founded by Aaron Burr, JPMorgan Chase (NYSE:JPM) is a leading financial services company offering investment banking, consumer banking, commercial banking, and asset management services globally.

Why Is JPM Not Exciting?

1. Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 6.9% for the last two years
2. Inferior net interest margin of 2.6% means it must compensate for lower profitability through increased loan originations
3. Anticipated 2.3 percentage point rise in its efficiency ratio suggests its expenses will increase as a percentage of revenue

JPMorgan Chase is trading at $285.86 per share, or 2.1x forward P/B. To fully understand why you should be careful with JPM, check out our full research report (it’s free).

One Stock to Buy:

Synchrony Financial (SYF)

Market Cap: $22.25 billion

Powering over 73 million active accounts and partnerships with major brands like Amazon, PayPal, and Lowe's, Synchrony Financial (NYSE:SYF) provides credit cards, installment loans, and banking products through partnerships with retailers, healthcare providers, and digital platforms.

Why Is SYF a Top Pick?

1. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
2. Impressive 17.4% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
3. Industry-leading 22.8% return on equity demonstrates management’s skill in finding high-return investments

At $64.01 per share, Synchrony Financial trades at 6.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.