2 S&P 500 Stocks Worth Your Attention and 1 We Ignore

The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning. Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.

Even among blue-chip stocks, not all investments are created equal – which is why we built StockStory to help you navigate the market. That said, here are two S&P 500 stocks positioned to outperform and one best left off your watchlist.

Market Cap: $21.19 billion

Processing approximately one-third of the adult U.S. population’s lab tests annually, Quest Diagnostics (NYSE:DGX) provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Why Does DGX Give Us Pause?

1. The company has faced growth challenges as its 3.2% annual revenue increases over the last five years fell short of other healthcare companies

2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 7.8 percentage points

3. Earnings per share fell by 2.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

Quest is trading at $191.59 per share, or 18x forward P/E. If you’re considering DGX for your portfolio, see our FREE research report to learn more.

Market Cap: $325.9 billion

Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.

Why Are We Bullish on LRCX?

1. Annual revenue growth of 19.8% over the past two years was outstanding, reflecting market share gains this cycle

2. Robust free cash flow margin of 27.9% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

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

Lam Research’s stock price of $261.15 implies a valuation ratio of 42.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Market Cap: $188.6 billion

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Could AMGN Be a Winner?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 14.2% annual sales growth over the last two years

2. Economies of scale give it some operating leverage when demand rises

3. AMGN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $350.01 per share, Amgen trades at 15.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

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.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.