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1 S&P 500 Stock with Solid Fundamentals and 2 to Turn Down

CZR Cover Image

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.

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 could deliver good returns and two that could be in trouble.

Two Stocks to Sell:

Caesars Entertainment (CZR)

Market Cap: $5.76 billion

Formerly Eldorado Resorts, Caesars Entertainment (NASDAQ: CZR) is a global gaming and hospitality company operating numerous casinos, hotels, and resort properties.

Why Are We Cautious About CZR?

  1. Sales were flat over the last two years, indicating it's failed to expand its business
  2. Earnings per share fell by 25.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
  3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $27.88 per share, Caesars Entertainment trades at 1.5x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CZR doesn’t pass our bar.

Interpublic Group (IPG)

Market Cap: $8.87 billion

With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE: IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.

Why Do We Pass on IPG?

  1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
  2. Forecasted revenue decline of 3.2% for the upcoming 12 months implies demand will fall even further
  3. Free cash flow margin shrank by 9.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Interpublic Group is trading at $24 per share, or 8.9x forward P/E. If you’re considering IPG for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Deckers (DECK)

Market Cap: $15.34 billion

Established in 1973, Deckers (NYSE: DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.

Why Does DECK Stand Out?

  1. 18.5% annual revenue growth over the last five years surpassed the sector average as its brand resonated with consumers
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 31.3% to outpace its revenue gains
  3. Improving returns on capital reflect management’s ability to monetize investments

Deckers’s stock price of $101.11 implies a valuation ratio of 16.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.

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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.

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