While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.

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 three S&P 500 stocks that don’t make the cut and some better choices instead.

Market Cap: $14.21 billion

Established in 1973, Deckers (NYSE:DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.

Why Is DECK Risky?

Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track

Poor expense management has led to an operating margin of 23.7% that is below the industry average

Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 18.8% for the last two years

Deckers’s stock price of $100.15 implies a valuation ratio of 13.2x forward P/E. If you’re considering DECK for your portfolio, see our FREE research report to learn more.

Market Cap: $53.28 billion

Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Why Is FAST Not Exciting?

Muted 5.7% annual revenue growth over the last two years shows its demand lagged behind its industrials peers

Earnings per share lagged its peers over the last two years as they only grew by 4.4% annually

Fastenal is trading at $46.56 per share, or 36.6x forward P/E. Dive into our free research report to see why there are better opportunities than FAST.

Market Cap: $235.3 billion

Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE:GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.

Why Are We Wary of GEV?

The company has faced growth challenges as its 3.6% annual revenue increases over the last four years fell short of other industrials companies

High input costs result in an inferior gross margin of 16.2% that must be offset through higher volumes

Suboptimal cost structure is highlighted by its history of operating margin losses

At $877.00 per share, GE Vernova trades at 57.3x forward P/E. Check out our free in-depth research report to learn more about why GEV doesn’t pass our bar.

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

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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.