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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that is positioned to outperform and two that could be in trouble.
Two Stocks to Sell:
Intel (INTC)
Market Cap: $227.7 billion
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Should You Dump INTC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.2% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- 18.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
At $45.88 per share, Intel trades at 95.2x forward P/E. Dive into our free research report to see why there are better opportunities than INTC.
CME Group (CME)
Market Cap: $114.8 billion
Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ: CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.
Why Does CME Worry Us?
- Annual revenue growth of 6% over the last five years was below our standards for the financials sector
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 9.6% annually
CME Group’s stock price of $320.28 implies a valuation ratio of 27.3x forward P/E. If you’re considering CME for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Ross Stores (ROST)
Market Cap: $69.06 billion
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ: ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Are We Fans of ROST?
- Store expansion strategy is justified by its healthy same-store sales
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.6% growth over the past two years
- Industry-leading 31.6% return on capital demonstrates management’s skill in finding high-return investments
Ross Stores is trading at $213.24 per share, or 27x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
