While the S&P 500 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 two S&P 500 stocks positioned to outperform and one that may struggle.

One Stock to Sell:

C.H. Robinson Worldwide (CHRW)

Market Cap: $10.8 billion

Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.

Why Is CHRW Risky?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 15.3% annually over the last two years

2. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 22.8% annually, worse than its revenue

3. Waning returns on capital imply its previous profit engines are losing steam

C.H. Robinson Worldwide’s stock price of $88.41 implies a valuation ratio of 18.7x forward price-to-earnings. To fully understand why you should be careful with CHRW, check out our full research report (it’s free) .

Two Stocks to Watch:

Microsoft (MSFT)

Market Cap: $2.68 trillion

Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.

Why Is MSFT a Good Business?

1. Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.

2. The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.

3. Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.

At $351.43 per share, Microsoft trades at 26.4x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free .

Ulta (ULTA)

Market Cap: $16.28 billion

Offering high-end prestige brands as well as lower-priced, mass-market ones, Ulta Beauty (NASDAQ:ULTA) is an American retailer that sells makeup, skincare, haircare, and fragrance products.