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 is leading the market forward and two that could be in trouble.
Two Stocks to Sell:
Dayforce (DAY)
Market Cap: $9.34 billion
Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE: DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses.
Why Are We Cautious About DAY?
- 18.7% annual revenue growth over the last three years was slower than its software peers
- Gross margin of 50.3% is way below its competitors, leaving less money to invest in areas like marketing and R&D
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 3.4 percentage points
Dayforce is trading at $58.39 per share, or 4.8x forward price-to-sales. Check out our free in-depth research report to learn more about why DAY doesn’t pass our bar.
PNC Financial Services Group (PNC)
Market Cap: $77.53 billion
Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.
Why Does PNC Fall Short?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual net interest income increases of 6.9% for the last five years
- Projected tangible book value per share decline of 5.3% for the next 12 months points to tough credit quality challenges ahead
- Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations
PNC Financial Services Group’s stock price of $198.78 implies a valuation ratio of 1.4x forward P/B. If you’re considering PNC for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Booking (BKNG)
Market Cap: $187.9 billion
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Why Is BKNG a Good Business?
- Has the opportunity to boost monetization through new features and premium offerings as its room nights booked have grown by 9.7% annually over the last two years
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 51.8% exceeded its revenue gains over the last three years
- Strong free cash flow margin of 33.1% enables it to reinvest or return capital consistently
At $5,784 per share, Booking trades at 20.7x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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