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.
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:
Comcast (CMCSA)
Market Cap: $121.5 billion
Formerly known as American Cable Systems, Comcast (NASDAQ: CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Do We Think CMCSA Will Underperform?
- Performance surrounding its domestic broadband customers has lagged its peers
- Anticipated sales growth of 2.4% for the next year implies demand will be shaky
- Low returns on capital reflect management’s struggle to allocate funds effectively
Comcast’s stock price of $33 implies a valuation ratio of 7.4x forward P/E. Read our free research report to see why you should think twice about including CMCSA in your portfolio.
Principal Financial Group (PFG)
Market Cap: $17.4 billion
Founded in 1879 by a Civil War veteran seeking to provide financial security for families, Principal Financial Group (NASDAQGS:PFG) provides retirement solutions, asset management, and employee benefits to businesses, individuals, and institutional clients globally.
Why Do We Pass on PFG?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.1% annually over the last five years
- 1.8% annual declines in net premiums earned for the past five years indicates policy sales struggled this cycle
- Book value per share tumbled by 1.7% annually over the last five years, showing insurance sector trends are working against its favor during this cycle
At $78.42 per share, Principal Financial Group trades at 1.5x forward P/B. If you’re considering PFG for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Meta (META)
Market Cap: $1.96 trillion
Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ: META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.
Why Do We Love META?
- Monetization efforts are paying off as its average revenue per user has grown by 14.5% annually over the last two years
- Share buybacks catapulted its annual earnings per share growth to 31.8%, which outperformed its revenue gains over the last three years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Meta is trading at $781.25 per share, or 16.8x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Comfort Systems (+782% 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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