S&P 500 Stocks to Watch: WM, V Outshine MDLZ

When it comes to the S&P 500, not every stock is created equal. Even among blue-chip companies, there are winners and losers. Two stocks that stand out as potential performers are Waste Management (WM) and Visa (V), while Mondelez (MDLZ) raises some concerns.

Waste Management has been growing its revenue at a rate of 10.6% annually over the past two years, indicating it is gaining market share in North America. The company's gross margin is a strong 39.1%, and its long-term operating margin is 17.5%. At $213.41 per share, WM trades at 25.1x forward P/E.

Visa, on the other hand, has seen revenue growth of 14.5% annually over the past five years, driven by its ability to solve complex business issues through secure money movement across more than 200 countries. The company's share buybacks have propelled annual earnings per share growth to 18.8%, outperforming its revenue gains. Visa is trading at $369.32 per share, or 25.7x forward P/E.

However, Mondelez raises some red flags. Declining unit sales over the past two years suggest that the company may need to lower prices to stimulate growth, and estimated sales growth of only 2.6% for the next 12 months implies slowing demand. The company's stock price of $61.80 implies a valuation ratio of 19.3x forward P/E.