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. That said, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
Verizon (VZ)
Market Cap: $188.1 billion
Formed in 1984 as Bell Atlantic after the breakup of Bell System into seven companies, Verizon (NYSE:VZ) is a telecom giant providing a range of communications and internet services.
Why Should You Dump VZ?
- Customer growth was choppy over the past two years, suggesting that increasing competition is causing challenges in landing new contracts
- Free cash flow margin is projected to show no improvement next year
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Verizon is trading at $44.43 per share, or 9.1x forward P/E. Read our free research report to see why you should think twice about including VZ in your portfolio.
FactSet (FDS)
Market Cap: $9.23 billion
Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE:FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.
Why Are We Cautious About FDS?
- Annual revenue growth of 5.5% over the last two years was below our standards for the financials sector
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 8.1% annually
At $247.83 per share, FactSet trades at 14.3x forward P/E. Check out our free in-depth research report to learn more about why FDS doesn’t pass our bar.
One Stock to Buy:
Humana (HUM)
Market Cap: $22.52 billion
With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Why Will HUM Outperform?
- Annual revenue growth of 12.8% over the last two years beat the sector average and underscores the unique value of its offerings
- Enormous revenue base of $126.3 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Humana’s stock price of $186.71 implies a valuation ratio of 14.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.