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 are two S&P 500 stocks that could deliver good returns and one that could be in trouble.
One Stock to Sell:
Archer-Daniels-Midland (ADM)
Market Cap: $32.45 billion
Transforming crops from the world's most productive agricultural regions into everyday essentials, Archer-Daniels-Midland (NYSE:ADM) processes and transports agricultural commodities like grains and oilseeds while manufacturing ingredients for food, beverages, feed, and industrial applications.
Why Do We Pass on ADM?
- Products have few die-hard fans as sales have declined by 7.5% annually over the last three years
- Gross margin of 6.5% is an output of its commoditized products
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Archer-Daniels-Midland’s stock price of $67.52 implies a valuation ratio of 17x forward P/E. If you’re considering ADM for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
ServiceNow (NOW)
Market Cap: $112.8 billion
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Is NOW a Good Business?
- Ability to secure long-term commitments with customers is evident in its 21% ARR growth over the last year
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 13.7%, and its operating leverage amplified its profits over the last year
- Robust free cash flow margin of 34.9% gives it many options for capital deployment
At $108.05 per share, ServiceNow trades at 6.9x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Monolithic Power Systems (MPWR)
Market Cap: $57.88 billion
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Are We Bullish on MPWR?
- Market share has increased this cycle as its 27% annual revenue growth over the last five years was exceptional
- Free cash flow margin expanded by 8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Monolithic Power Systems is trading at $1,184 per share, or 54.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 5 Growth Stocks for this month. 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.