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1 S&P 500 Stock to Consider Right Now and 2 We Find Risky

NXPI Cover Image

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. That said, here is one S&P 500 stock that is leading the market forward and two that could be in trouble.

Two Stocks to Sell:

NXP Semiconductors (NXPI)

Market Cap: $57.8 billion

Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.

Why Are We Cautious About NXPI?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4.1% annually over the last two years
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.2%
  3. Free cash flow margin dropped by 8.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

NXP Semiconductors’s stock price of $229.65 implies a valuation ratio of 18.3x forward P/E. Read our free research report to see why you should think twice about including NXPI in your portfolio.

Williams-Sonoma (WSM)

Market Cap: $24.93 billion

Started in 1956 as a store specializing in French cookware, Williams-Sonoma (NYSE: WSM) is a specialty retailer of higher-end kitchenware, home goods, and furniture.

Why Are We Wary of WSM?

  1. Store closures and disappointing same-store sales suggest demand is sluggish and it’s rightsizing its operations
  2. Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
  3. Free cash flow margin shrank by 5.3 percentage points over the last year, suggesting the company is consuming more capital to stay competitive

Williams-Sonoma is trading at $204 per share, or 23.7x forward P/E. Dive into our free research report to see why there are better opportunities than WSM.

One Stock to Watch:

Corpay (CPAY)

Market Cap: $22.64 billion

Formerly known as FLEETCOR until its 2024 rebrand, Corpay (NYSE: CPAY) provides specialized payment solutions for businesses to manage vehicle expenses, corporate payments, and lodging costs with enhanced control and reporting capabilities.

Why Are We Positive On CPAY?

  1. Decent 10.2% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 11.6% to outpace its revenue gains
  3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $320.68 per share, Corpay trades at 14.1x 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

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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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