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.

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 are two S&P 500 stocks that could deliver good returns and one that may struggle.

One Stock to Sell:

NVR (NVR)

Market Cap: $22.8 billion

Known for its unique land acquisition strategy, NVR (NYSE: NVR) is a respected homebuilder and mortgage company in the United States.

Why Does NVR Fall Short?

1. New orders were hard to come by as its average backlog growth of 1.3% over the past two years underwhelmed
2. Sales are projected to tank by 6.9% over the next 12 months as demand evaporates
3. Eroding returns on capital suggest its historical profit centers are aging

NVR is trading at $7,910 per share, or 18.5x forward P/E. If you’re considering NVR for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

CrowdStrike (CRWD)

Market Cap: $110.1 billion

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ: CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

Why Does CRWD Catch Our Eye?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 26.1% growth over the last year
2. Estimated revenue growth of 21.6% for the next 12 months implies its momentum over the last three years will continue
3. CRWD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

CrowdStrike’s stock price of $440.50 implies a valuation ratio of 21.8x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Stryker (SYK)

Market Cap: $145.6 billion

With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.

Why Is SYK on Our Radar?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 10.2% over the past two years
2. Economies of scale give it some operating leverage when demand rises
3. Earnings per share grew by 13.3% annually over the last five years, massively outpacing its peers

At $380.86 per share, Stryker trades at 27.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 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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