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.
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 is one S&P 500 stock that could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
Akamai Technologies (AKAM)
Market Cap: $14.92 billion
With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ: AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.
Why Is AKAM Risky?
- Muted 5.1% annual revenue growth over the last two years shows its demand lagged behind its software peers
- Sky-high servicing costs result in an inferior gross margin of 58.9% that must be offset through increased usage
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
At $103.40 per share, Akamai Technologies trades at 3.3x forward price-to-sales. If you’re considering AKAM for your portfolio, see our FREE research report to learn more.
West Pharmaceutical Services (WST)
Market Cap: $17.92 billion
Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.
Why Are We Wary of WST?
- 2.1% annual revenue growth over the last two years was slower than its healthcare peers
- Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 6.7 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
West Pharmaceutical Services is trading at $248.89 per share, or 31.4x forward P/E. To fully understand why you should be careful with WST, check out our full research report (it’s free).
One Stock to Watch:
Amazon (AMZN)
Market Cap: $2.33 trillion
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Could AMZN Be a Winner?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
Amazon’s stock price of $217.14 implies a valuation ratio of 27.4x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
