The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.

Even among blue-chip stocks, not all investments are created equal - which is why we built StockStory to help you navigate the market. Keeping that in mind, here are three S&P 500 stocks to avoid and some better alternatives instead.

Brown-Forman (BF.B)

Market Cap: $12.58 billion

Best known for its Jack Daniel's whiskey, Brown-Forman (NYSE:BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Why Does BF.B Worry Us?

1. Annual revenue declines of 2.4% over the last three years indicate problems with its market positioning

2. Projected sales for the next 12 months are flat and suggest demand will be subdued

3. Earnings per share have dipped by 2.1% annually over the past three years, which is concerning because stock prices follow EPS over the long term

Brown-Forman's stock price of $27.33 implies a valuation ratio of 16.2x forward P/E. If you're considering BF.B for your portfolio, see our FREE research report to learn more .

FOX (FOXA)

Market Cap: $27.2 billion

Founded in 1915, Fox (NASDAQ:FOXA) is a diversified media company, operating prominent cable news, television broadcasting, and digital media platforms.

Why Are We Bearish on FOXA?

1. The company has faced growth challenges as its 5.8% annual revenue increases over the last five years fell short of other consumer discretionary companies

2. Poor free cash flow margin of 13.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

3. Returns on capital are growing as management invests in more worthwhile ventures

FOX is trading at $67.75 per share, or 11.3x forward P/E. Check out our free in-depth research report to learn more about why FOXA doesn't pass our bar .

Carnival (CCL)

Market Cap: $33.91 billion

Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE:CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.

Why Do We Think CCL Will Underperform?

1. Number of passenger cruise days has disappointed over the past two years, indicating weak demand for its offerings

2. Free cash flow margin is not anticipated to grow over the next year

3. Low returns on capital reflect management's struggle to allocate funds effectively