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.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. That said, here are two S&P 500 stocks positioned to outperform and one that could be in trouble.
One Stock to Sell:
HP (HPQ)
Market Cap: $25.85 billion
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Do We Steer Clear of HPQ?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 2%
- Performance over the past two years shows each sale was less profitable, as its earnings per share fell by 2% annually
At $27.98 per share, HP trades at 8.3x forward P/E. Check out our free in-depth research report to learn more about why HPQ doesn’t pass our bar.
Two Stocks to Watch:
GE Aerospace (GE)
Market Cap: $320.5 billion
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Is GE a Top Pick?
- Impressive 15.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Robust free cash flow margin of 19.4% gives it many options for capital deployment
- Improving returns on capital reflect management’s ability to monetize investments
GE Aerospace’s stock price of $304.49 implies a valuation ratio of 45.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Accenture (ACN)
Market Cap: $153.6 billion
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Could ACN Be a Winner?
- Annual revenue growth of 9.5% over the last five years was superb and indicates its market share increased during this cycle
- Unparalleled revenue scale of $69.67 billion gives it an edge in distribution
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Accenture is trading at $247.75 per share, or 18x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 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-small-cap company Exlservice (+354% 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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