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 positioned to outperform and one that may struggle.
One Stock to Sell:
Regions Financial (RF)
Market Cap: $25.85 billion
Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE:RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas.
Why Does RF Worry Us?
- Muted 5.1% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Net interest margin dropped by 38.2 basis points (100 basis points = 1 percentage point) over the last two years, implying the firm’s loan book profitability fell as competitors entered the market
- Earnings per share lagged its peers over the last two years as they only grew by 2.2% annually
Regions Financial is trading at $29.72 per share, or 1.4x forward P/B. To fully understand why you should be careful with RF, check out our full research report (it’s free).
Two Stocks to Buy:
The Trade Desk (TTD)
Market Cap: $12.22 billion
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Are We Backing TTD?
- Average billings growth of 20.1% over the last year enhances its liquidity and shows there is steady demand for its products
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Excellent operating margin of 18.9% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
At $25.23 per share, The Trade Desk trades at 4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
O'Reilly (ORLY)
Market Cap: $77.96 billion
Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.
Why Will ORLY Outperform?
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 3.8% growth over the past two years
- Healthy operating margin of 19.5% shows it’s a well-run company with efficient processes
- Industry-leading 42.5% return on capital demonstrates management’s skill in finding high-return investments
O'Reilly’s stock price of $92.96 implies a valuation ratio of 29.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. 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.