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1 S&P 500 Stock with Promising Prospects and 2 We Avoid

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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.

Some large-cap stocks are past their peak, and StockStory is here to help you separate the winners from the laggards. Keeping that in mind, here is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

Kellanova (K)

Market Cap: $29.02 billion

With Corn Flakes as its first and most iconic product, Kellanova (NYSE: K) is a packaged foods company that is dominant in the cereal and snack categories.

Why Does K Worry Us?

  1. Flat unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
  2. Estimated sales growth of 2.4% for the next 12 months is soft and implies weaker demand
  3. Issuance of new shares over the last three years caused its earnings per share to fall by 3.5% annually

Kellanova’s stock price of $83.55 implies a valuation ratio of 22.5x forward P/E. Dive into our free research report to see why there are better opportunities than K.

Invesco (IVZ)

Market Cap: $10.1 billion

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Why Is IVZ Risky?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.4% annually over the last five years
  2. Flat earnings per share over the last five years underperformed the sector average
  3. ROE of 5.8% reflects management’s challenges in identifying attractive investment opportunities

Invesco is trading at $22.71 per share, or 9.4x forward P/E. Read our free research report to see why you should think twice about including IVZ in your portfolio.

One Stock to Watch:

Micron (MU)

Market Cap: $226 billion

Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NYSE: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.

Why Do We Like MU?

  1. Market share has increased this cycle as its 55.1% annual revenue growth over the last two years was exceptional
  2. Expected revenue growth of 49% for the next year suggests its market share will rise
  3. Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 24% annually

At $203.38 per share, Micron trades at 12x 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.

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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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