1 S&P 500 Stock with Competitive Advantages and 2 We Ignore

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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 that may struggle.

Market Cap: $8.92 billion

Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.

Why Are We Wary of CRL?

  1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth

  2. Sales are projected to be flat over the next 12 months and imply weak demand

  3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Charles River Laboratories’s stock price of $179.09 implies a valuation ratio of 17.7x forward P/E. Dive into our free research report to see why there are better opportunities than CRL.

Market Cap: $36.04 billion

Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp (NASDAQ:FITB) is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.

Why Are We Out on FITB?

  1. Net interest income trends were unexciting over the last five years as its 4.6% annual growth was below the typical banking firm

  2. Earnings per share were flat over the last two years while its revenue grew, showing its incremental sales were less profitable

  3. Products and services are facing profitability challenges during this cycle, as seen in its flat tangible book value per share over the last five years

At $54.58 per share, Fifth Third Bancorp trades at 1.5x forward P/B. Check out our free in-depth research report to learn more about why FITB doesn’t pass our bar.

Market Cap: $148.2 billion

With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.

Why Could ACN Be a Winner?

  1. Market share has increased this cycle as its 9.6% annual revenue growth over the last five years was exceptional

  2. Massive revenue base of $70.73 billion makes it a well-known name that influences purchasing decisions

  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Accenture is trading at $242.44 per share, or 17x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.