While the S&P 500 (^GSPC) includes industry leaders, not every stock in the index is a winner. Some companies are past their prime, weighed down by poor execution, weak financials, or structural headwinds.
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 two S&P 500 stocks that could deliver good returns and one that could be in trouble.
One Stock to Sell:
Omnicom Group (OMC)
Market Cap: $25.4 billion
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE:OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Why Are We Cautious About OMC?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 7.6 percentage points
- Waning returns on capital imply its previous profit engines are losing steam
At $80.75 per share, Omnicom Group trades at 8.8x forward P/E. Check out our free in-depth research report to learn more about why OMC doesn’t pass our bar.
Two Stocks to Buy:
Palantir Technologies (PLTR)
Market Cap: $423.7 billion
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Do We Love PLTR?
- Billings growth has averaged 52.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 51.2% gives it many options for capital deployment
Palantir Technologies’s stock price of $177.75 implies a valuation ratio of 78.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Eli Lilly (LLY)
Market Cap: $962.2 billion
Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE:LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.
Why Is LLY a Good Business?
- Annual revenue growth of 36.1% over the last two years was superb and indicates its market share increased during this cycle
- Adjusted operating margin improvement of 20.8 percentage points over the last two years demonstrates its ability to scale efficiently
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Eli Lilly is trading at $1,075 per share, or 34.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.