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.

Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. That said, here are three S&P 500 stocks to steer clear of and a few alternatives to consider.

Constellation Brands (STZ)

Market Cap: $30.41 billion

With a presence in more than 100 countries, Constellation Brands (NYSE:STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Why Does STZ Give Us Pause?

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

2. Projected sales decline of 6.6% for the next 12 months points to a tough demand environment ahead

3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 28.3 percentage points

Constellation Brands is trading at $171.89 per share, or 12.6x forward P/E. Dive into our free research report to see why there are better opportunities than STZ .

Nordson (NDSN)

Market Cap: $12.14 billion

Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.

Why Should You Sell NDSN?

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

2. Flat earnings per share over the last two years underperformed the sector average

3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.1 percentage points

Nordson’s stock price of $214.90 implies a valuation ratio of 20.7x forward P/E. Check out our free in-depth research report to learn more about why NDSN doesn’t pass our bar .

Avery Dennison (AVY)

Market Cap: $14.06 billion

Founded as Kum Kleen Products, Avery Dennison (NYSE:AVY) is a manufacturer of adhesive materials, display graphics, and packaging products, serving various industries.

Why Is AVY Risky?

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

2. Free cash flow margin dropped by 3.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

3. Eroding returns on capital suggest its historical profit centers are aging