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1 S&P 500 Stock with Exciting Potential and 2 We Brush Off

Oct 5, 2026 5:35 PM · YahooFinance

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 is one S&P 500 stock that could deliver good returns and two that could be in trouble.

Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE:ITW) manufactures engineered components and specialized equipment for numerous industries.

Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

Anticipated sales growth of 4.1% for the next year implies demand will be shaky

Earnings per share lagged its peers over the last two years as they only grew by 4% annually

Illinois Tool Works's stock price of $265.86 implies a valuation ratio of 22.2x forward P/E. If you're considering ITW for your portfolio, see our FREE research report to learn more.

Started with a $200 loan in 1880, Ball (NYSE:BALL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Annual sales growth of 2.3% over the last five years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand

Gross margin of 21.1% reflects its high production costs

Poor free cash flow margin of 0.1% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

At $56.68 per share, Ball trades at 13.4x forward P/E. To fully understand why you should be careful with BALL, check out our full research report (it's free).

Formerly part of Emerson Electric, Vertiv (NYSE:VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Core business is healthy and doesn't need acquisitions to boost sales as its organic revenue growth averaged 24.2% over the past two years

Free cash flow margin jumped by 32.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Improving returns on capital reflect management's ability to monetize investments

Vertiv is trading at $252.40 per share, or 31.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free.

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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.


Original source: YahooFinance