The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability. But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
Picking the right S&P 500 stocks requires more than just buying big names, and that’s where StockStory comes in. Keeping that in mind, here is one S&P 500 stock that could deliver good returns and two that may struggle.
Two Stocks to Sell:
Ford (F)
Market Cap: $51.84 billion
Established to make automobiles accessible to a broader segment of the population, Ford (NYSE: F) designs, manufactures, and sells a variety of automobiles, trucks, and electric vehicles.
Why Do We Steer Clear of F?
- Flat vehicles sold over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Earnings per share fell by 22.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- 9× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $12.90 per share, Ford trades at 11.2x forward P/E. If you’re considering F for your portfolio, see our FREE research report to learn more.
MSCI (MSCI)
Market Cap: $43.66 billion
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE: MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Does MSCI Fall Short?
- Negative return on equity shows that some of its growth strategies have backfired
MSCI is trading at $577.60 per share, or 31x forward P/E. Dive into our free research report to see why there are better opportunities than MSCI.
One Stock to Buy:
Coinbase (COIN)
Market Cap: $89.1 billion
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Will COIN Beat the Market?
- Monthly Transacting Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Strong engagement trends coupled with 55% annual growth in its average revenue per user demonstrate its platform’s stickiness with die-hard customers
- Earnings per share grew by 136% annually over the last two years and trumped its peers
Coinbase’s stock price of $320.95 implies a valuation ratio of 28.1x forward EV/EBITDA. Is now a good 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 6 Stocks for this week. 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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