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 is one S&P 500 stock that could deliver good returns and two best left off your watchlist.
Two Stocks to Sell:
General Dynamics (GD)
Market Cap: $91.2 billion
Creator of the famous M1 Abrahms tank, General Dynamics (NYSE: GD) develops aerospace, marine systems, combat systems, and information technology products.
Why Do We Think Twice About GD?
- Backlog growth averaged a weak 3.4% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
- Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin dropped by 1.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
General Dynamics’s stock price of $341.35 implies a valuation ratio of 20.6x forward P/E. Dive into our free research report to see why there are better opportunities than GD.
Ball (BALL)
Market Cap: $13.09 billion
Started with a $200 loan in 1880, Ball (NYSE: BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.
Why Should You Dump BALL?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- High input costs result in an inferior gross margin of 21.5% that must be offset through higher volumes
- Low free cash flow margin of -0.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
Ball is trading at $49.58 per share, or 12.6x forward P/E. Read our free research report to see why you should think twice about including BALL in your portfolio.
One Stock to Buy:
Copart (CPRT)
Market Cap: $37.67 billion
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Why Will CPRT Outperform?
- Annual revenue growth of 15.7% over the past five years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 18.1% annually, topping its revenue gains
- CPRT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $39.43 per share, Copart trades at 22.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
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-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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