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1 S&P 500 Stock with Competitive Advantages and 2 to Steer Clear Of

MTCH Cover Image

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. That said, here is one S&P 500 stock that is leading the market forward and two that may struggle.

Two Stocks to Sell:

AbbVie (ABBV)

Market Cap: $335.3 billion

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Why Are We Wary of ABBV?

  1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
  2. Expenses have increased as a percentage of revenue over the last two years as its adjusted operating margin fell by 9.2 percentage points
  3. 8.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

AbbVie is trading at $189.98 per share, or 14.9x forward P/E. Check out our free in-depth research report to learn more about why ABBV doesn’t pass our bar.

West Pharmaceutical Services (WST)

Market Cap: $16.14 billion

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE: WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

Why Do We Think Twice About WST?

  1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
  2. Efficiency has decreased over the last two years as its adjusted operating margin fell by 5.7 percentage points
  3. Waning returns on capital imply its previous profit engines are losing steam

West Pharmaceutical Services’s stock price of $224.62 implies a valuation ratio of 35.1x forward P/E. Dive into our free research report to see why there are better opportunities than WST.

One Stock to Watch:

Match Group (MTCH)

Market Cap: $7.81 billion

Originally started as a dial-up service before widespread internet adoption, Match (NASDAQ: MTCH) was an early innovator in online dating and today has a portfolio of apps including Tinder, Hinge, Archer, and OkCupid.

Why Do We Like MTCH?

  1. Monetization efforts are paying off as its average revenue per user has grown by 9.5% annually over the last two years
  2. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $32.08 per share, Match Group trades at 6.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.

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