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 are two S&P 500 stocks that could deliver good returns and one best left off your watchlist.
One Stock to Sell:
AIG (AIG)
Market Cap: $39.94 billion
With roots dating back to 1919 when it began as a small insurance agency in Shanghai, China, AIG (NYSE:AIG) is a global insurance organization that provides commercial and personal insurance solutions to businesses and individuals across more than 200 countries.
Why Are We Bearish on AIG?
- Sales tumbled by 9.3% annually over the last five years, showing market trends are working against it during this cycle
- Net premiums earned contracted by 4.7% annually over the last five years, showing unfavorable market dynamics this cycle
- Flat book value per share over the last five years suggests it must find different ways to enhance shareholder value during this cycle
AIG is trading at $76.75 per share, or 0.9x forward P/B. Dive into our free research report to see why there are better opportunities than AIG.
Two Stocks to Watch:
Humana (HUM)
Market Cap: $46.8 billion
With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Are We Bullish on HUM?
- Annual revenue growth of 15.1% over the last two years beat the sector average and underscores the unique value of its offerings
- Dominant market position is represented by its $145.8 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Humana’s stock price of $389.94 implies a valuation ratio of 31.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Chevron (CVX)
Market Cap: $392.1 billion
Operating everything from deepwater drilling rigs to corner gas stations, Chevron (NYSE:CVX) explores for, produces, and transports crude oil and natural gas, then refines that crude oil into gasoline, diesel, and other petroleum products.
Why Are We Positive on CVX?
- Annual revenue growth of 6.3% over the past ten years was outstanding, reflecting market share gains this cycle
- Massive revenue base of $215.3 billion makes it a household name that influences purchasing decisions
- Free cash flow generation is better than most peers and allows it to explore new investment opportunities
At $200.22 per share, Chevron trades at 12.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.