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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 is one S&P 500 stock that is leading the market forward and two best left off your watchlist.

Two Stocks to Sell:

McCormick (MKC)

Market Cap: $20.45 billion

The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.

Why Are We Cautious About MKC?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion

2. Anticipated sales growth of 2.2% for the next year implies demand will be shaky

3. Free cash flow margin dropped by 5.4 percentage points over the last year, implying the company became more capital intensive as competition picked up

McCormick is trading at $76.22 per share, or 24.4x forward P/E. If you’re considering MKC for your portfolio, see our FREE research report to learn more.

Danaher (DHR)

Market Cap: $139.4 billion

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Why Are We Wary of DHR?

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. Overall productivity fell over the last two years as its plummeting sales were accompanied by a decline in its adjusted operating margin

3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.2 percentage points

At $194.82 per share, Danaher trades at 24.7x forward P/E. To fully understand why you should be careful with DHR, check out our full research report (it’s free).

One Stock to Watch:

Yum! Brands (YUM)

Market Cap: $41.13 billion

Spun off as an independent company from PepsiCo, Yum! Brands (NYSE:YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.

Why Does YUM Stand Out?

1. Fast expansion of new restaurants indicates an aggressive approach to attacking untapped market opportunities

2. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 32.1%

3. Strong free cash flow margin of 18.9% enables it to reinvest or return capital consistently