StockStory Flags Veralto, D.R. Horton, Cooper Companies As Risky

StockStory has identified three S&P 500 constituents it considers risky due to slowing growth metrics and diminishing returns on capital. The firm points to specific fundamental weaknesses in Veralto, D.R. Horton, and Cooper Companies that distinguish them from the broader index's reputation for stability.

Veralto (NYSE: VLTO), which was spun off from Danaher in 2023, provides water analytics and treatment solutions. The company reported a market capitalization of $24.49 billion. StockStory cites a muted 4.6% annual revenue growth over the last five years as evidence that demand lagged behind its industrial peers. Projected sales growth of 6.7% for the next 12 months suggests continued sluggish demand. Veralto shares traded at $100.48, representing a 22.3x forward P/E ratio.

D.R. Horton (NYSE: DHI), one of the largest homebuilding companies in the U.S., reported a market cap of $37.85 billion. The firm notes that D.R. Horton's backlog has dropped by an average of 3.6% over the past two years, indicating a loss of orders as competition intensifies. Earnings per share have declined by 16% annually over the same period, a trend StockStory links to long-term stock price performance. Diminishing returns on capital suggest that earlier profit pools are drying up. At $135.56 per share, D.R. Horton trades at a 12.9x forward P/E.

Cooper Companies (NASDAQ: COO), a medical device manufacturer with a history dating back to 1958, focuses on vision care and women's health products. Its market capitalization stands at $11.06 billion. Organic revenue growth fell short of StockStory's benchmarks over the past two years, implying a need for improved products, pricing, or go-to-market strategy. Estimated sales growth of 2.9% for the next 12 months indicates demand will slow from its two-year trend. Below-average returns on capital suggest management has struggled to find compelling investment opportunities. Cooper Companies shares are priced at $58.17, implying a valuation ratio of 12.7x forward P/E.

StockStory promotes its AI platform for identifying momentum stocks, noting that names like Nvidia and Tecnoglass appeared on its list in 2020 with significant gains through June 2025.